Correlation Between Xinhua Winshare and AECOM TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY, you can compare the effects of market volatilities on Xinhua Winshare and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and AECOM TECHNOLOGY.
Diversification Opportunities for Xinhua Winshare and AECOM TECHNOLOGY
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and AECOM is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and AECOM TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM TECHNOLOGY has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and AECOM TECHNOLOGY go up and down completely randomly.
Pair Corralation between Xinhua Winshare and AECOM TECHNOLOGY
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the AECOM TECHNOLOGY. In addition to that, Xinhua Winshare is 1.81 times more volatile than AECOM TECHNOLOGY. It trades about -0.22 of its total potential returns per unit of risk. AECOM TECHNOLOGY is currently generating about -0.07 per unit of volatility. If you would invest 10,300 in AECOM TECHNOLOGY on November 3, 2024 and sell it today you would lose (200.00) from holding AECOM TECHNOLOGY or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. AECOM TECHNOLOGY
Performance |
| Timeline |
| Xinhua Winshare Publ |
| AECOM TECHNOLOGY |
Xinhua Winshare and AECOM TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and AECOM TECHNOLOGY
The main advantage of trading using opposite Xinhua Winshare and AECOM TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, AECOM TECHNOLOGY 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 AECOM TECHNOLOGY will offset losses from the drop in AECOM TECHNOLOGY's long position.| Xinhua Winshare vs. SBI Insurance Group | Xinhua Winshare vs. REVO INSURANCE SPA | Xinhua Winshare vs. GOLD ROAD RES | Xinhua Winshare vs. Vienna Insurance Group |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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