Correlation Between Xinhua Winshare and Sichuan Fulin
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Xinhua Winshare and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Sichuan Fulin.
Diversification Opportunities for Xinhua Winshare and Sichuan Fulin
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and Sichuan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Sichuan Fulin
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.95 times more return on investment than Sichuan Fulin. However, Xinhua Winshare Publishing is 1.05 times less risky than Sichuan Fulin. It trades about 0.04 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.02 per unit of risk. If you would invest 999.00 in Xinhua Winshare Publishing on October 14, 2024 and sell it today you would earn a total of 443.00 from holding Xinhua Winshare Publishing or generate 44.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Sichuan Fulin Transp |
Xinhua Winshare and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Sichuan Fulin
The main advantage of trading using opposite Xinhua Winshare and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's 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 |
| Sichuan Fulin vs. Zhongshan Broad Ocean Motor | Sichuan Fulin vs. Xinhua Winshare Publishing | Sichuan Fulin vs. Northern United Publishing | Sichuan Fulin vs. Duzhe Publishing Media |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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