Correlation Between Xinhua Winshare and GUARDANT HEALTH
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and GUARDANT HEALTH 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 GUARDANT HEALTH 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 GUARDANT HEALTH CL, you can compare the effects of market volatilities on Xinhua Winshare and GUARDANT HEALTH 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 GUARDANT HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and GUARDANT HEALTH.
Diversification Opportunities for Xinhua Winshare and GUARDANT HEALTH
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinhua and GUARDANT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and GUARDANT HEALTH CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUARDANT HEALTH CL 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 GUARDANT HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUARDANT HEALTH CL has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and GUARDANT HEALTH go up and down completely randomly.
Pair Corralation between Xinhua Winshare and GUARDANT HEALTH
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.12 times more return on investment than GUARDANT HEALTH. However, Xinhua Winshare is 1.12 times more volatile than GUARDANT HEALTH CL. It trades about 0.11 of its potential returns per unit of risk. GUARDANT HEALTH CL is currently generating about 0.01 per unit of risk. If you would invest 13.00 in Xinhua Winshare Publishing on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Xinhua Winshare Publishing or generate 769.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. GUARDANT HEALTH CL
Performance |
| Timeline |
| Xinhua Winshare Publ |
| GUARDANT HEALTH CL |
Xinhua Winshare and GUARDANT HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and GUARDANT HEALTH
The main advantage of trading using opposite Xinhua Winshare and GUARDANT HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, GUARDANT HEALTH 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 GUARDANT HEALTH will offset losses from the drop in GUARDANT HEALTH's long position.| Xinhua Winshare vs. The New York | Xinhua Winshare vs. Superior Plus Corp | Xinhua Winshare vs. NMI Holdings | Xinhua Winshare vs. SIVERS SEMICONDUCTORS AB |
| GUARDANT HEALTH vs. Danaher | GUARDANT HEALTH vs. Superior Plus Corp | GUARDANT HEALTH vs. NMI Holdings | GUARDANT HEALTH vs. SIVERS SEMICONDUCTORS AB |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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