Correlation Between Xinhua Winshare and Shanghai Pharmaceuticals
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Shanghai Pharmaceuticals Holding, you can compare the effects of market volatilities on Xinhua Winshare and Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Shanghai Pharmaceuticals.
Diversification Opportunities for Xinhua Winshare and Shanghai Pharmaceuticals
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinhua and Shanghai is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Shanghai Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pharmaceuticals has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Shanghai Pharmaceuticals go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Shanghai Pharmaceuticals
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 1.11 times more return on investment than Shanghai Pharmaceuticals. However, Xinhua Winshare is 1.11 times more volatile than Shanghai Pharmaceuticals Holding. It trades about 0.09 of its potential returns per unit of risk. Shanghai Pharmaceuticals Holding is currently generating about 0.09 per unit of risk. If you would invest 1,463 in Xinhua Winshare Publishing on September 15, 2024 and sell it today you would earn a total of 48.00 from holding Xinhua Winshare Publishing or generate 3.28% 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. Shanghai Pharmaceuticals Holdi
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Shanghai Pharmaceuticals |
Xinhua Winshare and Shanghai Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Shanghai Pharmaceuticals
The main advantage of trading using opposite Xinhua Winshare and Shanghai Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals will offset losses from the drop in Shanghai Pharmaceuticals' long position.| Xinhua Winshare vs. Qtone Education Group | Xinhua Winshare vs. Cowealth Medical China | Xinhua Winshare vs. Northern United Publishing | Xinhua Winshare vs. Blue Sail Medical |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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