Correlation Between Xinhua Winshare and EMERSON ELECTRIC
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and EMERSON ELECTRIC 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 EMERSON ELECTRIC 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 EMERSON ELECTRIC, you can compare the effects of market volatilities on Xinhua Winshare and EMERSON ELECTRIC 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 EMERSON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and EMERSON ELECTRIC.
Diversification Opportunities for Xinhua Winshare and EMERSON ELECTRIC
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinhua and EMERSON is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and EMERSON ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERSON ELECTRIC 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 EMERSON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERSON ELECTRIC has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and EMERSON ELECTRIC go up and down completely randomly.
Pair Corralation between Xinhua Winshare and EMERSON ELECTRIC
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the EMERSON ELECTRIC. In addition to that, Xinhua Winshare is 2.07 times more volatile than EMERSON ELECTRIC. It trades about -0.23 of its total potential returns per unit of risk. EMERSON ELECTRIC is currently generating about 0.2 per unit of volatility. If you would invest 12,022 in EMERSON ELECTRIC on October 25, 2024 and sell it today you would earn a total of 468.00 from holding EMERSON ELECTRIC or generate 3.89% 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. EMERSON ELECTRIC
Performance |
| Timeline |
| Xinhua Winshare Publ |
| EMERSON ELECTRIC |
Xinhua Winshare and EMERSON ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and EMERSON ELECTRIC
The main advantage of trading using opposite Xinhua Winshare and EMERSON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, EMERSON ELECTRIC 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 EMERSON ELECTRIC will offset losses from the drop in EMERSON ELECTRIC's long position.| Xinhua Winshare vs. China Datang | Xinhua Winshare vs. Western Copper and | Xinhua Winshare vs. Stewart Information Services | Xinhua Winshare vs. GALENA MINING LTD |
| EMERSON ELECTRIC vs. SEKISUI CHEMICAL | EMERSON ELECTRIC vs. BORR DRILLING NEW | EMERSON ELECTRIC vs. KINGBOARD CHEMICAL | EMERSON ELECTRIC vs. Columbia Sportswear |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |