Correlation Between Xinhua Winshare and Delta Air
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Delta Air 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 Delta Air 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 Delta Air Lines, you can compare the effects of market volatilities on Xinhua Winshare and Delta Air 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 Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Delta Air.
Diversification Opportunities for Xinhua Winshare and Delta Air
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinhua and Delta is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Delta Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines 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 Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Delta Air go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Delta Air
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the Delta Air. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 1.15 times less risky than Delta Air. The stock trades about -0.12 of its potential returns per unit of risk. The Delta Air Lines is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,884 in Delta Air Lines on October 24, 2024 and sell it today you would earn a total of 732.00 from holding Delta Air Lines or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Delta Air Lines
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Delta Air Lines |
Xinhua Winshare and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Delta Air
The main advantage of trading using opposite Xinhua Winshare and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Delta Air 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 Delta Air will offset losses from the drop in Delta Air's long position.| Xinhua Winshare vs. China Datang | Xinhua Winshare vs. Western Copper and | Xinhua Winshare vs. Stewart Information Services | Xinhua Winshare vs. GALENA MINING LTD |
| Delta Air vs. The Japan Steel | Delta Air vs. AWILCO DRILLING PLC | Delta Air vs. Virtus Investment Partners | Delta Air vs. NorAm Drilling AS |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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