Correlation Between Xinhua Winshare and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and PICKN PAY 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 PICKN PAY 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 PICKN PAY STORES, you can compare the effects of market volatilities on Xinhua Winshare and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and PICKN PAY.
Diversification Opportunities for Xinhua Winshare and PICKN PAY
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and PICKN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and PICKN PAY go up and down completely randomly.
Pair Corralation between Xinhua Winshare and PICKN PAY
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.17 times more return on investment than PICKN PAY. However, Xinhua Winshare is 1.17 times more volatile than PICKN PAY STORES. It trades about 0.65 of its potential returns per unit of risk. PICKN PAY STORES is currently generating about -0.1 per unit of risk. If you would invest 119.00 in Xinhua Winshare Publishing on October 1, 2024 and sell it today you would earn a total of 24.00 from holding Xinhua Winshare Publishing or generate 20.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. PICKN PAY STORES
Performance |
| Timeline |
| Xinhua Winshare Publ |
| PICKN PAY STORES |
Xinhua Winshare and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and PICKN PAY
The main advantage of trading using opposite Xinhua Winshare and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY'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 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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