Correlation Between Soken Chemical and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both Soken Chemical 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 Soken Chemical and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Soken Chemical 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 Soken Chemical with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and Xinhua Winshare.
Diversification Opportunities for Soken Chemical and Xinhua Winshare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and Xinhua is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering 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 Soken Chemical 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 Soken Chemical Engineering 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 Soken Chemical i.e., Soken Chemical and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Soken Chemical and Xinhua Winshare
If you would invest 30.00 in Xinhua Winshare Publishing on September 12, 2024 and sell it today you would earn a total of 93.00 from holding Xinhua Winshare Publishing or generate 310.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soken Chemical Engineering vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Soken Chemical Engin |
| Xinhua Winshare Publ |
Soken Chemical and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and Xinhua Winshare
The main advantage of trading using opposite Soken Chemical and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical 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.| Soken Chemical vs. ATOSS SOFTWARE | Soken Chemical vs. Goodyear Tire Rubber | Soken Chemical vs. Tencent Music Entertainment | Soken Chemical vs. Warner Music Group |
| Xinhua Winshare vs. Superior Plus Corp | Xinhua Winshare vs. SIVERS SEMICONDUCTORS AB | Xinhua Winshare vs. Norsk Hydro ASA | Xinhua Winshare vs. Reliance Steel Aluminum |
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.
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