Correlation Between Xinhua Winshare and USU Software
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and USU Software 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 USU Software 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 USU Software AG, you can compare the effects of market volatilities on Xinhua Winshare and USU Software 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 USU Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and USU Software.
Diversification Opportunities for Xinhua Winshare and USU Software
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xinhua and USU is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and USU Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USU Software AG 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 USU Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USU Software AG has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and USU Software go up and down completely randomly.
Pair Corralation between Xinhua Winshare and USU Software
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 2.36 times more return on investment than USU Software. However, Xinhua Winshare is 2.36 times more volatile than USU Software AG. It trades about 0.11 of its potential returns per unit of risk. USU Software AG is currently generating about 0.02 per unit of risk. If you would invest 13.00 in Xinhua Winshare Publishing on November 6, 2024 and sell it today you would earn a total of 119.00 from holding Xinhua Winshare Publishing or generate 915.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. USU Software AG
Performance |
| Timeline |
| Xinhua Winshare Publ |
| USU Software AG |
Xinhua Winshare and USU Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and USU Software
The main advantage of trading using opposite Xinhua Winshare and USU Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, USU Software 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 USU Software will offset losses from the drop in USU Software's long position.| Xinhua Winshare vs. Osisko Metals | Xinhua Winshare vs. Aluminum of | Xinhua Winshare vs. CORNISH METALS INC | Xinhua Winshare vs. DETALION GAMES SA |
| USU Software vs. Gruppo Mutuionline SpA | USU Software vs. Pebblebrook Hotel Trust | USU Software vs. CODERE ONLINE LUX | USU Software vs. BOS BETTER ONLINE |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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