Correlation Between Xinhua Winshare and Jiangsu Broadcasting
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Xinhua Winshare and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Jiangsu Broadcasting.
Diversification Opportunities for Xinhua Winshare and Jiangsu Broadcasting
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinhua and Jiangsu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Jiangsu Broadcasting
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 1.35 times more return on investment than Jiangsu Broadcasting. However, Xinhua Winshare is 1.35 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.02 per unit of risk. If you would invest 999.00 in Xinhua Winshare Publishing on October 18, 2024 and sell it today you would earn a total of 420.00 from holding Xinhua Winshare Publishing or generate 42.04% 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. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Jiangsu Broadcasting |
Xinhua Winshare and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Jiangsu Broadcasting
The main advantage of trading using opposite Xinhua Winshare and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Xinhua Winshare vs. Liaoning Dingjide Petrochemical | Xinhua Winshare vs. Jilin Chemical Fibre | Xinhua Winshare vs. Wuxi Chemical Equipment | Xinhua Winshare vs. Ningxia Younglight Chemicals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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