Correlation Between Xinhua Winshare and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Xinhua Winshare and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Superior Plus.
Diversification Opportunities for Xinhua Winshare and Superior Plus
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xinhua and Superior is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Superior Plus go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Superior Plus
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the Superior Plus. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 3.01 times less risky than Superior Plus. The stock trades about -0.11 of its potential returns per unit of risk. The Superior Plus Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Superior Plus Corp on August 29, 2024 and sell it today you would lose (18.00) from holding Superior Plus Corp or give up 4.21% 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. Superior Plus Corp
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Superior Plus Corp |
Xinhua Winshare and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Superior Plus
The main advantage of trading using opposite Xinhua Winshare and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' 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 |
| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |