Correlation Between Rosinbomb and Xinjiang Goldwind
Can any of the company-specific risk be diversified away by investing in both Rosinbomb 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 Rosinbomb and Xinjiang Goldwind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rosinbomb and Xinjiang Goldwind Science, you can compare the effects of market volatilities on Rosinbomb 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 Rosinbomb with a short position of Xinjiang Goldwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rosinbomb and Xinjiang Goldwind.
Diversification Opportunities for Rosinbomb and Xinjiang Goldwind
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rosinbomb and Xinjiang is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Rosinbomb 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 Rosinbomb 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 Rosinbomb 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 Rosinbomb i.e., Rosinbomb and Xinjiang Goldwind go up and down completely randomly.
Pair Corralation between Rosinbomb and Xinjiang Goldwind
Given the investment horizon of 90 days Rosinbomb is expected to generate 1.01 times less return on investment than Xinjiang Goldwind. In addition to that, Rosinbomb is 2.9 times more volatile than Xinjiang Goldwind Science. It trades about 0.03 of its total potential returns per unit of risk. Xinjiang Goldwind Science is currently generating about 0.08 per unit of volatility. If you would invest 53.00 in Xinjiang Goldwind Science on September 12, 2024 and sell it today you would earn a total of 38.00 from holding Xinjiang Goldwind Science or generate 71.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.21% |
| Values | Daily Returns |
Rosinbomb vs. Xinjiang Goldwind Science
Performance |
| Timeline |
| Rosinbomb |
| Xinjiang Goldwind Science |
Rosinbomb and Xinjiang Goldwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rosinbomb and Xinjiang Goldwind
The main advantage of trading using opposite Rosinbomb and Xinjiang Goldwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rosinbomb 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.| Rosinbomb vs. Xinjiang Goldwind Science | Rosinbomb vs. American Superconductor | Rosinbomb vs. Cummins | Rosinbomb vs. Aquagold International |
| Xinjiang Goldwind vs. Shanghai Electric Group | Xinjiang Goldwind vs. American Superconductor | Xinjiang Goldwind vs. Cummins | Xinjiang Goldwind vs. Aquagold International |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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