Correlation Between Xinhua Winshare and VOLVO B
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and VOLVO B 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 VOLVO B 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 VOLVO B UNSPADR, you can compare the effects of market volatilities on Xinhua Winshare and VOLVO B 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 VOLVO B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and VOLVO B.
Diversification Opportunities for Xinhua Winshare and VOLVO B
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinhua and VOLVO is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and VOLVO B UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VOLVO B UNSPADR 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 VOLVO B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VOLVO B UNSPADR has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and VOLVO B go up and down completely randomly.
Pair Corralation between Xinhua Winshare and VOLVO B
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.51 times more return on investment than VOLVO B. However, Xinhua Winshare is 1.51 times more volatile than VOLVO B UNSPADR. It trades about 0.12 of its potential returns per unit of risk. VOLVO B UNSPADR is currently generating about 0.05 per unit of risk. If you would invest 91.00 in Xinhua Winshare Publishing on October 25, 2024 and sell it today you would earn a total of 39.00 from holding Xinhua Winshare Publishing or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. VOLVO B UNSPADR
Performance |
| Timeline |
| Xinhua Winshare Publ |
| VOLVO B UNSPADR |
Xinhua Winshare and VOLVO B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and VOLVO B
The main advantage of trading using opposite Xinhua Winshare and VOLVO B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, VOLVO B 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 VOLVO B will offset losses from the drop in VOLVO B'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 |
| VOLVO B vs. MagnaChip Semiconductor Corp | VOLVO B vs. SIDETRADE EO 1 | VOLVO B vs. CANON MARKETING JP | VOLVO B vs. Hua Hong Semiconductor |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |