Correlation Between Aumann AG and Xinjiang Goldwind
Can any of the company-specific risk be diversified away by investing in both Aumann AG and Xinjiang Goldwind 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 Aumann AG and Xinjiang Goldwind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aumann AG and Xinjiang Goldwind Science, you can compare the effects of market volatilities on Aumann AG and Xinjiang Goldwind 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 Aumann AG with a short position of Xinjiang Goldwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aumann AG and Xinjiang Goldwind.
Diversification Opportunities for Aumann AG and Xinjiang Goldwind
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aumann and Xinjiang is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aumann AG and Xinjiang Goldwind Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Goldwind Science and Aumann AG 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 Aumann AG are associated (or correlated) with Xinjiang Goldwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Goldwind Science has no effect on the direction of Aumann AG i.e., Aumann AG and Xinjiang Goldwind go up and down completely randomly.
Pair Corralation between Aumann AG and Xinjiang Goldwind
If you would invest 1,300 in Aumann AG on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Aumann AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aumann AG vs. Xinjiang Goldwind Science
Performance |
| Timeline |
| Aumann AG |
| Xinjiang Goldwind Science |
Aumann AG and Xinjiang Goldwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aumann AG and Xinjiang Goldwind
The main advantage of trading using opposite Aumann AG and Xinjiang Goldwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aumann AG position performs unexpectedly, Xinjiang Goldwind 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 Xinjiang Goldwind will offset losses from the drop in Xinjiang Goldwind's long position.| Aumann AG vs. Parker Hannifin | Aumann AG vs. Eaton PLC | Aumann AG vs. Dover | Aumann AG vs. Illinois Tool Works |
| Xinjiang Goldwind vs. Shanghai Electric Group | Xinjiang Goldwind vs. American Superconductor | Xinjiang Goldwind vs. Cummins |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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