Correlation Between CHINA EDUCATION and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both CHINA EDUCATION and Xinhua Winshare 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 CHINA EDUCATION and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA EDUCATION GROUP and Xinhua Winshare Publishing, you can compare the effects of market volatilities on CHINA EDUCATION 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 CHINA EDUCATION with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA EDUCATION and Xinhua Winshare.
Diversification Opportunities for CHINA EDUCATION and Xinhua Winshare
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CHINA and Xinhua is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CHINA EDUCATION GROUP 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 CHINA EDUCATION 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 CHINA EDUCATION GROUP 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 CHINA EDUCATION i.e., CHINA EDUCATION and Xinhua Winshare go up and down completely randomly.
Pair Corralation between CHINA EDUCATION and Xinhua Winshare
Assuming the 90 days horizon CHINA EDUCATION GROUP is expected to under-perform the Xinhua Winshare. In addition to that, CHINA EDUCATION is 2.77 times more volatile than Xinhua Winshare Publishing. It trades about -0.24 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.11 per unit of volatility. If you would invest 118.00 in Xinhua Winshare Publishing on August 29, 2024 and sell it today you would lose (5.00) from holding Xinhua Winshare Publishing or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA EDUCATION GROUP vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| CHINA EDUCATION GROUP |
| Xinhua Winshare Publ |
CHINA EDUCATION and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA EDUCATION and Xinhua Winshare
The main advantage of trading using opposite CHINA EDUCATION and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA EDUCATION 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.| CHINA EDUCATION vs. Choice Hotels International | CHINA EDUCATION vs. Wyndham Hotels Resorts | CHINA EDUCATION vs. FIREWEED METALS P | CHINA EDUCATION vs. PARKEN Sport Entertainment |
| Xinhua Winshare vs. Superior Plus Corp | Xinhua Winshare vs. NMI Holdings | Xinhua Winshare vs. Origin Agritech | Xinhua Winshare vs. SIVERS SEMICONDUCTORS AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |