Correlation Between Xinhua Winshare and Beijing Mainstreets
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Xinhua Winshare and Beijing Mainstreets 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 Xinhua Winshare with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Beijing Mainstreets.
Diversification Opportunities for Xinhua Winshare and Beijing Mainstreets
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and Beijing is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Xinhua Winshare 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 Xinhua Winshare Publishing are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Beijing Mainstreets
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to under-perform the Beijing Mainstreets. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 2.17 times less risky than Beijing Mainstreets. The stock trades about -0.03 of its potential returns per unit of risk. The Beijing Mainstreets Investment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Beijing Mainstreets Investment on October 14, 2024 and sell it today you would earn a total of 62.00 from holding Beijing Mainstreets Investment or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Beijing Mainstreets |
Xinhua Winshare and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Beijing Mainstreets
The main advantage of trading using opposite Xinhua Winshare and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Xinhua Winshare vs. China Mobile Limited | Xinhua Winshare vs. Huizhou Speed Wireless | Xinhua Winshare vs. Runjian Communication Co | Xinhua Winshare vs. Wuhan Yangtze Communication |
| Beijing Mainstreets vs. MayAir Technology Co | Beijing Mainstreets vs. Tangel Publishing | Beijing Mainstreets vs. Changjiang Publishing Media | Beijing Mainstreets vs. Xinhua Winshare Publishing |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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