Correlation Between Xinhua Winshare and Xiangtan Electrochemical
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Xinhua Winshare and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Xiangtan Electrochemical.
Diversification Opportunities for Xinhua Winshare and Xiangtan Electrochemical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinhua and Xiangtan is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Xiangtan Electrochemical
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.93 times more return on investment than Xiangtan Electrochemical. However, Xinhua Winshare Publishing is 1.07 times less risky than Xiangtan Electrochemical. It trades about 0.04 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about -0.01 per unit of risk. If you would invest 992.00 in Xinhua Winshare Publishing on September 3, 2024 and sell it today you would earn a total of 466.00 from holding Xinhua Winshare Publishing or generate 46.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Xiangtan Electrochemical |
Xinhua Winshare and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Xiangtan Electrochemical
The main advantage of trading using opposite Xinhua Winshare and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Xinhua Winshare vs. Xiangtan Electrochemical Scientific | Xinhua Winshare vs. Yangmei Chemical Co | Xinhua Winshare vs. Wuxi Chemical Equipment | Xinhua Winshare vs. Dymatic Chemicals |
| Xiangtan Electrochemical vs. Zijin Mining Group | Xiangtan Electrochemical vs. Baoshan Iron Steel | Xiangtan Electrochemical vs. Rongsheng Petrochemical Co | Xiangtan Electrochemical vs. Hoshine Silicon Ind |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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