Correlation Between Xinhua Winshare and Aluminumof China
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Aluminumof China 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 Aluminumof China 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 Aluminum of, you can compare the effects of market volatilities on Xinhua Winshare and Aluminumof China 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 Aluminumof China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Aluminumof China.
Diversification Opportunities for Xinhua Winshare and Aluminumof China
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and Aluminumof is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminumof China 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 Aluminumof China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminumof China has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Aluminumof China go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Aluminumof China
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 0.54 times more return on investment than Aluminumof China. However, Xinhua Winshare Publishing is 1.87 times less risky than Aluminumof China. It trades about 0.25 of its potential returns per unit of risk. Aluminum of is currently generating about 0.02 per unit of risk. If you would invest 112.00 in Xinhua Winshare Publishing on October 12, 2024 and sell it today you would earn a total of 22.00 from holding Xinhua Winshare Publishing or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Aluminum of
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Aluminumof China |
Xinhua Winshare and Aluminumof China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Aluminumof China
The main advantage of trading using opposite Xinhua Winshare and Aluminumof China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Aluminumof China 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 Aluminumof China will offset losses from the drop in Aluminumof China's long position.| Xinhua Winshare vs. GWILLI FOOD | Xinhua Winshare vs. MTY Food Group | Xinhua Winshare vs. Thai Beverage Public | Xinhua Winshare vs. MUTUIONLINE |
| Aluminumof China vs. National Beverage Corp | Aluminumof China vs. Xinhua Winshare Publishing | Aluminumof China vs. DEVRY EDUCATION GRP | Aluminumof China vs. Strategic Education |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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