Correlation Between Xinhua Winshare and EMBARK EDUCATION
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and EMBARK EDUCATION 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 EMBARK EDUCATION 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 EMBARK EDUCATION LTD, you can compare the effects of market volatilities on Xinhua Winshare and EMBARK EDUCATION 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 EMBARK EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and EMBARK EDUCATION.
Diversification Opportunities for Xinhua Winshare and EMBARK EDUCATION
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinhua and EMBARK is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and EMBARK EDUCATION LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMBARK EDUCATION LTD 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 EMBARK EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMBARK EDUCATION LTD has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and EMBARK EDUCATION go up and down completely randomly.
Pair Corralation between Xinhua Winshare and EMBARK EDUCATION
Assuming the 90 days horizon Xinhua Winshare is expected to generate 2.88 times less return on investment than EMBARK EDUCATION. In addition to that, Xinhua Winshare is 2.3 times more volatile than EMBARK EDUCATION LTD. It trades about 0.03 of its total potential returns per unit of risk. EMBARK EDUCATION LTD is currently generating about 0.21 per unit of volatility. If you would invest 30.00 in EMBARK EDUCATION LTD on August 31, 2024 and sell it today you would earn a total of 1.00 from holding EMBARK EDUCATION LTD or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. EMBARK EDUCATION LTD
Performance |
| Timeline |
| Xinhua Winshare Publ |
| EMBARK EDUCATION LTD |
Xinhua Winshare and EMBARK EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and EMBARK EDUCATION
The main advantage of trading using opposite Xinhua Winshare and EMBARK EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, EMBARK EDUCATION 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 EMBARK EDUCATION will offset losses from the drop in EMBARK EDUCATION's long position.| Xinhua Winshare vs. Superior Plus Corp | Xinhua Winshare vs. NMI Holdings | Xinhua Winshare vs. Origin Agritech | Xinhua Winshare vs. SIVERS SEMICONDUCTORS AB |
| EMBARK EDUCATION vs. IDP EDUCATION LTD | EMBARK EDUCATION vs. Strategic Education | EMBARK EDUCATION vs. Laureate Education | EMBARK EDUCATION vs. Superior Plus Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |