Correlation Between Xinhua Winshare and Hefei Metalforming
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Hefei Metalforming Mach, you can compare the effects of market volatilities on Xinhua Winshare and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Hefei Metalforming.
Diversification Opportunities for Xinhua Winshare and Hefei Metalforming
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinhua and Hefei is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Hefei Metalforming
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 1.76 times less risky than Hefei Metalforming. The stock trades about -0.19 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 741.00 in Hefei Metalforming Mach on August 25, 2024 and sell it today you would earn a total of 79.00 from holding Hefei Metalforming Mach or generate 10.66% 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. Hefei Metalforming Mach
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Hefei Metalforming Mach |
Xinhua Winshare and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Hefei Metalforming
The main advantage of trading using opposite Xinhua Winshare and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Xinhua Winshare vs. China State Construction | Xinhua Winshare vs. Huafa Industrial Co | Xinhua Winshare vs. China International Capital | Xinhua Winshare vs. Kweichow Moutai 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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