Correlation Between SPORTING and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both SPORTING 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 SPORTING and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPORTING and Xinhua Winshare Publishing, you can compare the effects of market volatilities on SPORTING 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 SPORTING with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPORTING and Xinhua Winshare.
Diversification Opportunities for SPORTING and Xinhua Winshare
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPORTING and Xinhua is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SPORTING 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 SPORTING 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 SPORTING 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 SPORTING i.e., SPORTING and Xinhua Winshare go up and down completely randomly.
Pair Corralation between SPORTING and Xinhua Winshare
Assuming the 90 days trading horizon SPORTING is expected to generate 17.13 times less return on investment than Xinhua Winshare. But when comparing it to its historical volatility, SPORTING is 2.16 times less risky than Xinhua Winshare. It trades about 0.01 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Xinhua Winshare Publishing on November 1, 2024 and sell it today you would earn a total of 120.00 from holding Xinhua Winshare Publishing or generate 923.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPORTING vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| SPORTING |
| Xinhua Winshare Publ |
SPORTING and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPORTING and Xinhua Winshare
The main advantage of trading using opposite SPORTING and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPORTING 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.| SPORTING vs. REVO INSURANCE SPA | SPORTING vs. Ameriprise Financial | SPORTING vs. CHIBA BANK | SPORTING vs. Motorcar Parts of |
| Xinhua Winshare vs. DATADOT TECHNOLOGY | Xinhua Winshare vs. Sekisui Chemical Co | Xinhua Winshare vs. Silicon Motion Technology | Xinhua Winshare vs. TERADATA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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