Correlation Between AiXin Life and Wanderport Corp
Can any of the company-specific risk be diversified away by investing in both AiXin Life and Wanderport Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AiXin Life and Wanderport Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiXin Life International and Wanderport Corp, you can compare the effects of market volatilities on AiXin Life and Wanderport Corp 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 AiXin Life with a short position of Wanderport Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiXin Life and Wanderport Corp.
Diversification Opportunities for AiXin Life and Wanderport Corp
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiXin and Wanderport is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AiXin Life International and Wanderport Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanderport Corp and AiXin Life 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 AiXin Life International are associated (or correlated) with Wanderport Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanderport Corp has no effect on the direction of AiXin Life i.e., AiXin Life and Wanderport Corp go up and down completely randomly.
Pair Corralation between AiXin Life and Wanderport Corp
Given the investment horizon of 90 days AiXin Life International is expected to generate 3.95 times more return on investment than Wanderport Corp. However, AiXin Life is 3.95 times more volatile than Wanderport Corp. It trades about 0.06 of its potential returns per unit of risk. Wanderport Corp is currently generating about 0.03 per unit of risk. If you would invest 401.00 in AiXin Life International on September 3, 2024 and sell it today you would lose (399.30) from holding AiXin Life International or give up 99.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.47% |
| Values | Daily Returns |
AiXin Life International vs. Wanderport Corp
Performance |
| Timeline |
| AiXin Life International |
| Wanderport Corp |
AiXin Life and Wanderport Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiXin Life and Wanderport Corp
The main advantage of trading using opposite AiXin Life and Wanderport Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiXin Life position performs unexpectedly, Wanderport Corp 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 Wanderport Corp will offset losses from the drop in Wanderport Corp's long position.| AiXin Life vs. Bunzl plc | AiXin Life vs. Wanderport Corp | AiXin Life vs. Innovative Food Hldg | AiXin Life vs. Calavo Growers |
| Wanderport Corp vs. AiXin Life International | Wanderport Corp vs. Bunzl plc | Wanderport Corp vs. Innovative Food Hldg | Wanderport Corp vs. Organto Foods |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |