Correlation Between Xinhua Winshare and Zhejiang Publishing
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Zhejiang Publishing Media, you can compare the effects of market volatilities on Xinhua Winshare and Zhejiang 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Zhejiang Publishing.
Diversification Opportunities for Xinhua Winshare and Zhejiang Publishing
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and Zhejiang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Zhejiang Publishing
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.71 times more return on investment than Zhejiang Publishing. However, Xinhua Winshare Publishing is 1.42 times less risky than Zhejiang Publishing. It trades about -0.21 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about -0.15 per unit of risk. If you would invest 1,523 in Xinhua Winshare Publishing on August 29, 2024 and sell it today you would lose (129.00) from holding Xinhua Winshare Publishing or give up 8.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Zhejiang Publishing Media |
Xinhua Winshare and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Zhejiang Publishing
The main advantage of trading using opposite Xinhua Winshare and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Zhejiang 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Xinhua Winshare vs. Industrial and Commercial | Xinhua Winshare vs. Agricultural Bank of | Xinhua Winshare vs. China Construction Bank | Xinhua Winshare vs. Bank of China |
| Zhejiang Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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