Correlation Between SM WIRTSCHAFTSBER and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both SM WIRTSCHAFTSBER 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 SM WIRTSCHAFTSBER and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SM WIRTSCHAFTSBER N and Xinhua Winshare Publishing, you can compare the effects of market volatilities on SM WIRTSCHAFTSBER 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 SM WIRTSCHAFTSBER with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SM WIRTSCHAFTSBER and Xinhua Winshare.
Diversification Opportunities for SM WIRTSCHAFTSBER and Xinhua Winshare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMWN and Xinhua is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SM WIRTSCHAFTSBER N 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 SM WIRTSCHAFTSBER 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 SM WIRTSCHAFTSBER N 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 SM WIRTSCHAFTSBER i.e., SM WIRTSCHAFTSBER and Xinhua Winshare go up and down completely randomly.
Pair Corralation between SM WIRTSCHAFTSBER and Xinhua Winshare
If you would invest 114.00 in Xinhua Winshare Publishing on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Xinhua Winshare Publishing or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
SM WIRTSCHAFTSBER N vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| SM WIRTSCHAFTSBER |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xinhua Winshare Publ |
SM WIRTSCHAFTSBER and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SM WIRTSCHAFTSBER and Xinhua Winshare
The main advantage of trading using opposite SM WIRTSCHAFTSBER and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SM WIRTSCHAFTSBER 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.| SM WIRTSCHAFTSBER vs. CVS Health | SM WIRTSCHAFTSBER vs. FEMALE HEALTH | SM WIRTSCHAFTSBER vs. Sabra Health Care | SM WIRTSCHAFTSBER vs. Ming Le Sports |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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