Correlation Between CHINA TONTINE and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE 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 TONTINE 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 TONTINE WINES and Xinhua Winshare Publishing, you can compare the effects of market volatilities on CHINA TONTINE 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 TONTINE with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Xinhua Winshare.
Diversification Opportunities for CHINA TONTINE and Xinhua Winshare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Xinhua is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES 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 TONTINE 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 TONTINE WINES 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 TONTINE i.e., CHINA TONTINE and Xinhua Winshare go up and down completely randomly.
Pair Corralation between CHINA TONTINE and Xinhua Winshare
If you would invest 113.00 in Xinhua Winshare Publishing on September 22, 2024 and sell it today you would earn a total of 26.00 from holding Xinhua Winshare Publishing or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| CHINA TONTINE WINES |
| Xinhua Winshare Publ |
CHINA TONTINE and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and Xinhua Winshare
The main advantage of trading using opposite CHINA TONTINE and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE 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 TONTINE vs. Gaztransport Technigaz SA | CHINA TONTINE vs. CHEMICAL INDUSTRIES | CHINA TONTINE vs. TIANDE CHEMICAL | CHINA TONTINE vs. NISSAN CHEMICAL IND |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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