Correlation Between Xinhua Winshare and MICRONIC MYDATA
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and MICRONIC MYDATA 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 MICRONIC MYDATA 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 MICRONIC MYDATA, you can compare the effects of market volatilities on Xinhua Winshare and MICRONIC MYDATA 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 MICRONIC MYDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and MICRONIC MYDATA.
Diversification Opportunities for Xinhua Winshare and MICRONIC MYDATA
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinhua and MICRONIC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA 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 MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and MICRONIC MYDATA go up and down completely randomly.
Pair Corralation between Xinhua Winshare and MICRONIC MYDATA
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.3 times more return on investment than MICRONIC MYDATA. However, Xinhua Winshare is 1.3 times more volatile than MICRONIC MYDATA. It trades about 0.34 of its potential returns per unit of risk. MICRONIC MYDATA is currently generating about 0.05 per unit of risk. If you would invest 123.00 in Xinhua Winshare Publishing on October 11, 2024 and sell it today you would earn a total of 16.00 from holding Xinhua Winshare Publishing or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. MICRONIC MYDATA
Performance |
| Timeline |
| Xinhua Winshare Publ |
| MICRONIC MYDATA |
Xinhua Winshare and MICRONIC MYDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and MICRONIC MYDATA
The main advantage of trading using opposite Xinhua Winshare and MICRONIC MYDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, MICRONIC MYDATA 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 MICRONIC MYDATA will offset losses from the drop in MICRONIC MYDATA's long position.| Xinhua Winshare vs. Urban Outfitters | Xinhua Winshare vs. G III Apparel Group | Xinhua Winshare vs. Rocket Internet SE | Xinhua Winshare vs. Ribbon Communications |
| MICRONIC MYDATA vs. De Grey Mining | MICRONIC MYDATA vs. GREENX METALS LTD | MICRONIC MYDATA vs. VIVA WINE GROUP | MICRONIC MYDATA vs. CARSALESCOM |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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