Correlation Between Xinhua Winshare and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Grand Canyon 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 Grand Canyon 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 Grand Canyon Education, you can compare the effects of market volatilities on Xinhua Winshare and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Grand Canyon.
Diversification Opportunities for Xinhua Winshare and Grand Canyon
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and Grand is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Grand Canyon go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Grand Canyon
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 2.84 times more return on investment than Grand Canyon. However, Xinhua Winshare is 2.84 times more volatile than Grand Canyon Education. It trades about 0.11 of its potential returns per unit of risk. Grand Canyon Education is currently generating about 0.06 per unit of risk. If you would invest 12.00 in Xinhua Winshare Publishing on September 3, 2024 and sell it today you would earn a total of 104.00 from holding Xinhua Winshare Publishing or generate 866.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Grand Canyon Education
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Grand Canyon Education |
Xinhua Winshare and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Grand Canyon
The main advantage of trading using opposite Xinhua Winshare and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon'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 |
| Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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