Correlation Between Northern United and Xinhua Winshare
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By analyzing existing cross correlation between Northern United Publishing and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Xinhua Winshare.
Diversification Opportunities for Northern United and Xinhua Winshare
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Northern and Xinhua is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Northern United and Xinhua Winshare
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.4 times more return on investment than Xinhua Winshare. However, Northern United is 1.4 times more volatile than Xinhua Winshare Publishing. It trades about 0.26 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.14 per unit of risk. If you would invest 615.00 in Northern United Publishing on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Northern United Publishing or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Northern United Publ |
| Xinhua Winshare Publ |
Northern United and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Xinhua Winshare
The main advantage of trading using opposite Northern United and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Cambricon Technologies Corp | Northern United vs. Loongson Technology Corp | Northern United vs. Shenzhen Fortune Trend | Northern United vs. Chongqing Road Bridge |
| Xinhua Winshare vs. Hubei Huaqiang High Tech | Xinhua Winshare vs. Hainan Haiqi Transportation | Xinhua Winshare vs. Keli Sensing Technology | Xinhua Winshare vs. Zhongshan Broad Ocean Motor |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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