Correlation Between Xinhua Winshare and Wanhua Chemical
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Wanhua Chemical Group, you can compare the effects of market volatilities on Xinhua Winshare and Wanhua Chemical 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 Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Wanhua Chemical.
Diversification Opportunities for Xinhua Winshare and Wanhua Chemical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and Wanhua is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group 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 Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Wanhua Chemical go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Wanhua Chemical
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 1.21 times more return on investment than Wanhua Chemical. However, Xinhua Winshare is 1.21 times more volatile than Wanhua Chemical Group. It trades about -0.24 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.37 per unit of risk. If you would invest 1,540 in Xinhua Winshare Publishing on October 16, 2024 and sell it today you would lose (115.00) from holding Xinhua Winshare Publishing or give up 7.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Wanhua Chemical Group
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Wanhua Chemical Group |
Xinhua Winshare and Wanhua Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Wanhua Chemical
The main advantage of trading using opposite Xinhua Winshare and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.| Xinhua Winshare vs. ButOne Information Corp | Xinhua Winshare vs. Hongrun Construction Group | Xinhua Winshare vs. Hangzhou Gisway Information | Xinhua Winshare vs. Allied Machinery Co |
| Wanhua Chemical vs. Xiamen Jihong Package | Wanhua Chemical vs. Shandong Sanyuan Biotechnology | Wanhua Chemical vs. Shanghai Rightongene Biotechnology | Wanhua Chemical vs. Xiwang Foodstuffs Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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