Correlation Between Xinhua Winshare and Dazhong Transportation
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Dazhong Transportation Group, you can compare the effects of market volatilities on Xinhua Winshare and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Dazhong Transportation.
Diversification Opportunities for Xinhua Winshare and Dazhong Transportation
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and Dazhong is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Dazhong Transportation
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.76 times more return on investment than Dazhong Transportation. However, Xinhua Winshare Publishing is 1.31 times less risky than Dazhong Transportation. It trades about -0.27 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about -0.29 per unit of risk. If you would invest 1,553 in Xinhua Winshare Publishing on October 18, 2024 and sell it today you would lose (134.00) from holding Xinhua Winshare Publishing or give up 8.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Dazhong Transportation Group
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Dazhong Transportation |
Xinhua Winshare and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Dazhong Transportation
The main advantage of trading using opposite Xinhua Winshare and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Xinhua Winshare vs. Liaoning Dingjide Petrochemical | Xinhua Winshare vs. Jilin Chemical Fibre | Xinhua Winshare vs. Wuxi Chemical Equipment | Xinhua Winshare vs. Ningxia Younglight Chemicals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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