Correlation Between Xinhua Winshare and MOLSON RS
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and MOLSON RS 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 MOLSON RS 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 MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Xinhua Winshare and MOLSON RS 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 MOLSON RS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and MOLSON RS.
Diversification Opportunities for Xinhua Winshare and MOLSON RS
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and MOLSON is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE 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 MOLSON RS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS BEVERAGE has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and MOLSON RS go up and down completely randomly.
Pair Corralation between Xinhua Winshare and MOLSON RS
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.12 times more return on investment than MOLSON RS. However, Xinhua Winshare is 1.12 times more volatile than MOLSON RS BEVERAGE. It trades about -0.02 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about -0.39 per unit of risk. If you would invest 122.00 in Xinhua Winshare Publishing on January 13, 2025 and sell it today you would lose (3.00) from holding Xinhua Winshare Publishing or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| Xinhua Winshare Publ |
| MOLSON RS BEVERAGE |
Xinhua Winshare and MOLSON RS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and MOLSON RS
The main advantage of trading using opposite Xinhua Winshare and MOLSON RS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, MOLSON RS 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 MOLSON RS will offset losses from the drop in MOLSON RS's long position.| Xinhua Winshare vs. RELX PLC | Xinhua Winshare vs. Relx PLC ADR | Xinhua Winshare vs. Wolters Kluwer NV | Xinhua Winshare vs. WOLTERS KLUWER ADR |
| MOLSON RS vs. Stag Industrial | MOLSON RS vs. Zijin Mining Group | MOLSON RS vs. ARDAGH METAL PACDL 0001 | MOLSON RS vs. IMAGIN MEDICAL 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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