Correlation Between Xinhua Winshare and Shenzhen Fortune
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Xinhua Winshare and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Shenzhen Fortune.
Diversification Opportunities for Xinhua Winshare and Shenzhen Fortune
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinhua and Shenzhen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Shenzhen Fortune
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.52 times more return on investment than Shenzhen Fortune. However, Xinhua Winshare Publishing is 1.94 times less risky than Shenzhen Fortune. It trades about -0.15 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about -0.1 per unit of risk. If you would invest 1,574 in Xinhua Winshare Publishing on November 3, 2024 and sell it today you would lose (65.00) from holding Xinhua Winshare Publishing or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Shenzhen Fortune Trend |
Xinhua Winshare and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Shenzhen Fortune
The main advantage of trading using opposite Xinhua Winshare and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Xinhua Winshare vs. Grandblue Environment Co | Xinhua Winshare vs. JuneYao Dairy Co | Xinhua Winshare vs. Guilin Seamild Foods | Xinhua Winshare vs. Yan Tai Shuang |
| Shenzhen Fortune vs. Jiamei Food Packaging | Shenzhen Fortune vs. Youyou Foods Co | Shenzhen Fortune vs. Yankershop Food Co | Shenzhen Fortune vs. Zhejiang Huatong Meat |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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