Correlation Between Huafa Industrial and Xinhua Winshare
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By analyzing existing cross correlation between Huafa Industrial Co and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Huafa Industrial and Xinhua Winshare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Huafa Industrial with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Xinhua Winshare.
Diversification Opportunities for Huafa Industrial and Xinhua Winshare
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huafa and Xinhua is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ and Huafa Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Huafa Industrial Co are associated (or correlated) with Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Huafa Industrial and Xinhua Winshare
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the Xinhua Winshare. In addition to that, Huafa Industrial is 1.23 times more volatile than Xinhua Winshare Publishing. It trades about -0.03 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.02 per unit of volatility. If you would invest 1,330 in Xinhua Winshare Publishing on August 29, 2024 and sell it today you would earn a total of 106.00 from holding Xinhua Winshare Publishing or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Huafa Industrial |
| Xinhua Winshare Publ |
Huafa Industrial and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Xinhua Winshare
The main advantage of trading using opposite Huafa Industrial and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Xinhua Winshare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Huafa Industrial vs. Cambricon Technologies Corp | Huafa Industrial vs. Empyrean Technology Co | Huafa Industrial vs. Kuang Chi Technologies | Huafa Industrial vs. Gansu Jiu Steel |
| Xinhua Winshare vs. Industrial and Commercial | Xinhua Winshare vs. Agricultural Bank of | Xinhua Winshare vs. China Construction Bank | Xinhua Winshare vs. Bank of China |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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