Correlation Between SMA Solar and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both SMA Solar 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 SMA Solar and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMA Solar Technology and Xinhua Winshare Publishing, you can compare the effects of market volatilities on SMA Solar 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 SMA Solar with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and Xinhua Winshare.
Diversification Opportunities for SMA Solar and Xinhua Winshare
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMA and Xinhua is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology 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 SMA Solar 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 SMA Solar Technology 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 SMA Solar i.e., SMA Solar and Xinhua Winshare go up and down completely randomly.
Pair Corralation between SMA Solar and Xinhua Winshare
Assuming the 90 days horizon SMA Solar Technology is expected to generate 3.38 times more return on investment than Xinhua Winshare. However, SMA Solar is 3.38 times more volatile than Xinhua Winshare Publishing. It trades about 0.11 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.23 per unit of risk. If you would invest 1,366 in SMA Solar Technology on September 13, 2024 and sell it today you would earn a total of 144.00 from holding SMA Solar Technology or generate 10.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMA Solar Technology vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| SMA Solar Technology |
| Xinhua Winshare Publ |
SMA Solar and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and Xinhua Winshare
The main advantage of trading using opposite SMA Solar and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar 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.| SMA Solar vs. Hochschild Mining plc | SMA Solar vs. CI GAMES SA | SMA Solar vs. GAMESTOP | SMA Solar vs. International Game Technology |
| Xinhua Winshare vs. HYDROFARM HLD GRP | Xinhua Winshare vs. Federal Agricultural Mortgage | Xinhua Winshare vs. H FARM SPA | Xinhua Winshare vs. Corporate Office Properties |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |