Correlation Between Xinhua Winshare and SPORT LISBOA
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and SPORT LISBOA 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 SPORT LISBOA 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 SPORT LISBOA E, you can compare the effects of market volatilities on Xinhua Winshare and SPORT LISBOA 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 SPORT LISBOA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and SPORT LISBOA.
Diversification Opportunities for Xinhua Winshare and SPORT LISBOA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and SPORT is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and SPORT LISBOA E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPORT LISBOA E 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 SPORT LISBOA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPORT LISBOA E has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and SPORT LISBOA go up and down completely randomly.
Pair Corralation between Xinhua Winshare and SPORT LISBOA
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 0.73 times more return on investment than SPORT LISBOA. However, Xinhua Winshare Publishing is 1.37 times less risky than SPORT LISBOA. It trades about 0.27 of its potential returns per unit of risk. SPORT LISBOA E is currently generating about 0.14 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 | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. SPORT LISBOA E
Performance |
| Timeline |
| Xinhua Winshare Publ |
| SPORT LISBOA E |
Xinhua Winshare and SPORT LISBOA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and SPORT LISBOA
The main advantage of trading using opposite Xinhua Winshare and SPORT LISBOA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, SPORT LISBOA 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 SPORT LISBOA will offset losses from the drop in SPORT LISBOA'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 |
| SPORT LISBOA vs. G8 EDUCATION | SPORT LISBOA vs. Strategic Education | SPORT LISBOA vs. IDP EDUCATION LTD | SPORT LISBOA vs. American Public Education |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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