Correlation Between Zhejiang Publishing and Xinhua Winshare
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By analyzing existing cross correlation between Zhejiang Publishing Media and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Zhejiang Publishing and Xinhua Winshare 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 Zhejiang Publishing with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Xinhua Winshare.
Diversification Opportunities for Zhejiang Publishing and Xinhua Winshare
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Xinhua is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ and Zhejiang Publishing 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 Zhejiang Publishing Media are associated (or correlated) with Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Xinhua Winshare
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Xinhua Winshare. In addition to that, Zhejiang Publishing is 1.42 times more volatile than Xinhua Winshare Publishing. It trades about -0.15 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.21 per unit of volatility. 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 |
Zhejiang Publishing Media vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Xinhua Winshare Publ |
Zhejiang Publishing and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Xinhua Winshare
The main advantage of trading using opposite Zhejiang Publishing and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Zhejiang Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
| Xinhua Winshare vs. Industrial and Commercial | Xinhua Winshare vs. Agricultural Bank of | Xinhua Winshare vs. China Construction Bank | Xinhua Winshare 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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