Correlation Between Xinhua Winshare and KB HOME
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and KB HOME 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 KB HOME 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 KB HOME, you can compare the effects of market volatilities on Xinhua Winshare and KB HOME 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 KB HOME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and KB HOME.
Diversification Opportunities for Xinhua Winshare and KB HOME
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinhua and KBH is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and KB HOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB HOME 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 KB HOME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB HOME has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and KB HOME go up and down completely randomly.
Pair Corralation between Xinhua Winshare and KB HOME
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.0 times more return on investment than KB HOME. However, Xinhua Winshare is 1.0 times more volatile than KB HOME. It trades about 0.27 of its potential returns per unit of risk. KB HOME is currently generating about 0.21 per unit of risk. If you would invest 109.00 in Xinhua Winshare Publishing on September 5, 2024 and sell it today you would earn a total of 10.00 from holding Xinhua Winshare Publishing or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. KB HOME
Performance |
| Timeline |
| Xinhua Winshare Publ |
| KB HOME |
Xinhua Winshare and KB HOME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and KB HOME
The main advantage of trading using opposite Xinhua Winshare and KB HOME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, KB HOME 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 KB HOME will offset losses from the drop in KB HOME's long position.| Xinhua Winshare vs. Computer And Technologies | Xinhua Winshare vs. SMA Solar Technology | Xinhua Winshare vs. Align Technology | Xinhua Winshare vs. DXC Technology Co |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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