Correlation Between Xinhua Winshare and National Storage
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and National Storage 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 National Storage 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 National Storage Affiliates, you can compare the effects of market volatilities on Xinhua Winshare and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and National Storage.
Diversification Opportunities for Xinhua Winshare and National Storage
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xinhua and National is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and National Storage go up and down completely randomly.
Pair Corralation between Xinhua Winshare and National Storage
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.32 times more return on investment than National Storage. However, Xinhua Winshare is 1.32 times more volatile than National Storage Affiliates. It trades about -0.08 of its potential returns per unit of risk. National Storage Affiliates is currently generating about -0.36 per unit of risk. If you would invest 134.00 in Xinhua Winshare Publishing on October 16, 2024 and sell it today you would lose (4.00) from holding Xinhua Winshare Publishing or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. National Storage Affiliates
Performance |
| Timeline |
| Xinhua Winshare Publ |
| National Storage Aff |
Xinhua Winshare and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and National Storage
The main advantage of trading using opposite Xinhua Winshare and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.| Xinhua Winshare vs. CeoTronics AG | Xinhua Winshare vs. FORMPIPE SOFTWARE AB | Xinhua Winshare vs. CEOTRONICS | Xinhua Winshare vs. Take Two Interactive Software |
| National Storage vs. AXWAY SOFTWARE EO | National Storage vs. Xinhua Winshare Publishing | National Storage vs. CyberArk Software | National Storage vs. Alfa Financial Software |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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