Correlation Between Xinhua Winshare and Crédit Agricole
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Crédit Agricole 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 Crédit Agricole 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 Crdit Agricole SA, you can compare the effects of market volatilities on Xinhua Winshare and Crédit Agricole 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 Crédit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Crédit Agricole.
Diversification Opportunities for Xinhua Winshare and Crédit Agricole
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinhua and Crédit is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA 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 Crédit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Crédit Agricole go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Crédit Agricole
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the Crédit Agricole. In addition to that, Xinhua Winshare is 1.87 times more volatile than Crdit Agricole SA. It trades about -0.22 of its total potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.35 per unit of volatility. If you would invest 1,323 in Crdit Agricole SA on November 3, 2024 and sell it today you would earn a total of 127.00 from holding Crdit Agricole SA or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Crdit Agricole SA
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Crdit Agricole SA |
Xinhua Winshare and Crédit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Crédit Agricole
The main advantage of trading using opposite Xinhua Winshare and Crédit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Crédit Agricole 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 Crédit Agricole will offset losses from the drop in Crédit Agricole's long position.| Xinhua Winshare vs. SBI Insurance Group | Xinhua Winshare vs. REVO INSURANCE SPA | Xinhua Winshare vs. GOLD ROAD RES | Xinhua Winshare vs. Vienna Insurance Group |
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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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