Correlation Between Xinhua Winshare and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and COFCO Joycome 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 Xinhua Winshare and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and COFCO Joycome Foods, you can compare the effects of market volatilities on Xinhua Winshare and COFCO Joycome 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 Xinhua Winshare with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and COFCO Joycome.
Diversification Opportunities for Xinhua Winshare and COFCO Joycome
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and COFCO is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and Xinhua Winshare 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 Xinhua Winshare Publishing are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and COFCO Joycome go up and down completely randomly.
Pair Corralation between Xinhua Winshare and COFCO Joycome
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.35 times more return on investment than COFCO Joycome. However, Xinhua Winshare is 1.35 times more volatile than COFCO Joycome Foods. It trades about 0.11 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.01 per unit of risk. If you would invest 13.00 in Xinhua Winshare Publishing on November 7, 2024 and sell it today you would earn a total of 119.00 from holding Xinhua Winshare Publishing or generate 915.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. COFCO Joycome Foods
Performance |
| Timeline |
| Xinhua Winshare Publ |
| COFCO Joycome Foods |
Xinhua Winshare and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and COFCO Joycome
The main advantage of trading using opposite Xinhua Winshare and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| Xinhua Winshare vs. Osisko Metals | Xinhua Winshare vs. Aluminum of | Xinhua Winshare vs. CORNISH METALS INC | Xinhua Winshare vs. DETALION GAMES SA |
| COFCO Joycome vs. Nestl SA | COFCO Joycome vs. Kraft Heinz Co | COFCO Joycome vs. General Mills | COFCO Joycome vs. General Mills |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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