Correlation Between Xinhua Winshare and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Kirin Holdings 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 Kirin Holdings 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 Kirin Holdings, you can compare the effects of market volatilities on Xinhua Winshare and Kirin Holdings 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 Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Kirin Holdings.
Diversification Opportunities for Xinhua Winshare and Kirin Holdings
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and Kirin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Kirin Holdings go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Kirin Holdings
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 3.42 times more return on investment than Kirin Holdings. However, Xinhua Winshare is 3.42 times more volatile than Kirin Holdings. It trades about 0.12 of its potential returns per unit of risk. Kirin Holdings is currently generating about -0.01 per unit of risk. If you would invest 12.00 in Xinhua Winshare Publishing on September 14, 2024 and sell it today you would earn a total of 116.00 from holding Xinhua Winshare Publishing or generate 966.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Kirin Holdings
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Kirin Holdings |
Xinhua Winshare and Kirin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Kirin Holdings
The main advantage of trading using opposite Xinhua Winshare and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Kirin Holdings 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.| Xinhua Winshare vs. Superior Plus Corp | Xinhua Winshare vs. SIVERS SEMICONDUCTORS AB | Xinhua Winshare vs. Norsk Hydro ASA | Xinhua Winshare vs. Reliance Steel Aluminum |
| Kirin Holdings vs. Strategic Education | Kirin Holdings vs. Xinhua Winshare Publishing | Kirin Holdings vs. Adtalem Global Education | Kirin Holdings vs. NURAN WIRELESS 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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