Correlation Between Xinhua Winshare and Shandong Publishing
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Shandong Publishing Media, you can compare the effects of market volatilities on Xinhua Winshare and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Shandong Publishing.
Diversification Opportunities for Xinhua Winshare and Shandong Publishing
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinhua and Shandong is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Shandong Publishing go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Shandong Publishing
Assuming the 90 days trading horizon Xinhua Winshare is expected to generate 1.45 times less return on investment than Shandong Publishing. In addition to that, Xinhua Winshare is 1.04 times more volatile than Shandong Publishing Media. It trades about 0.04 of its total potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.05 per unit of volatility. If you would invest 630.00 in Shandong Publishing Media on August 24, 2024 and sell it today you would earn a total of 405.00 from holding Shandong Publishing Media or generate 64.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Shandong Publishing Media
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Shandong Publishing Media |
Xinhua Winshare and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Shandong Publishing
The main advantage of trading using opposite Xinhua Winshare and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| Xinhua Winshare vs. Zhejiang Kingland Pipeline | Xinhua Winshare vs. Vohringer Home Technology | Xinhua Winshare vs. Mengtian Home Group | Xinhua Winshare vs. Yingde Greatchem Chemicals |
| Shandong Publishing vs. Kunwu Jiuding Investment | Shandong Publishing vs. Tieling Newcity Investment | Shandong Publishing vs. Shenzhen Kexin Communication | Shandong Publishing vs. Hunan Investment Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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