Correlation Between Corporate Office and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both Corporate Office and Xinhua Winshare 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 Corporate Office and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Office Properties and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Corporate Office and Xinhua Winshare 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 Corporate Office with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Xinhua Winshare.
Diversification Opportunities for Corporate Office and Xinhua Winshare
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Corporate and Xinhua is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ and Corporate Office 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 Corporate Office Properties are associated (or correlated) with Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Corporate Office i.e., Corporate Office and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Corporate Office and Xinhua Winshare
Assuming the 90 days horizon Corporate Office is expected to generate 50.27 times less return on investment than Xinhua Winshare. But when comparing it to its historical volatility, Corporate Office Properties is 2.13 times less risky than Xinhua Winshare. It trades about 0.0 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 89.00 in Xinhua Winshare Publishing on December 4, 2024 and sell it today you would earn a total of 36.00 from holding Xinhua Winshare Publishing or generate 40.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Office Properties vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Corporate Office Pro |
| Xinhua Winshare Publ |
Corporate Office and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and Xinhua Winshare
The main advantage of trading using opposite Corporate Office and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Corporate Office vs. PSI Software AG | Corporate Office vs. BII Railway Transportation | Corporate Office vs. CyberArk Software | Corporate Office vs. Kingdee International Software |
| Xinhua Winshare vs. Algonquin Power Utilities | Xinhua Winshare vs. Major Drilling Group | Xinhua Winshare vs. Pets at Home | Xinhua Winshare vs. Haverty Furniture Companies |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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