Correlation Between Xinjiang Goldwind and American Superconductor
Can any of the company-specific risk be diversified away by investing in both Xinjiang Goldwind and American Superconductor 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 Xinjiang Goldwind and American Superconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinjiang Goldwind Science and American Superconductor, you can compare the effects of market volatilities on Xinjiang Goldwind and American Superconductor 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 Xinjiang Goldwind with a short position of American Superconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Goldwind and American Superconductor.
Diversification Opportunities for Xinjiang Goldwind and American Superconductor
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and American is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Goldwind Science and American Superconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Superconductor and Xinjiang Goldwind 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 Xinjiang Goldwind Science are associated (or correlated) with American Superconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Superconductor has no effect on the direction of Xinjiang Goldwind i.e., Xinjiang Goldwind and American Superconductor go up and down completely randomly.
Pair Corralation between Xinjiang Goldwind and American Superconductor
Assuming the 90 days horizon Xinjiang Goldwind Science is expected to under-perform the American Superconductor. But the pink sheet apears to be less risky and, when comparing its historical volatility, Xinjiang Goldwind Science is 3.1 times less risky than American Superconductor. The pink sheet trades about -0.08 of its potential returns per unit of risk. The American Superconductor is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,348 in American Superconductor on August 31, 2024 and sell it today you would earn a total of 889.00 from holding American Superconductor or generate 37.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Goldwind Science vs. American Superconductor
Performance |
| Timeline |
| Xinjiang Goldwind Science |
| American Superconductor |
Xinjiang Goldwind and American Superconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Goldwind and American Superconductor
The main advantage of trading using opposite Xinjiang Goldwind and American Superconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Goldwind position performs unexpectedly, American Superconductor 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 American Superconductor will offset losses from the drop in American Superconductor's long position.| Xinjiang Goldwind vs. GE Aerospace | Xinjiang Goldwind vs. Eaton PLC | Xinjiang Goldwind vs. Siemens AG Class | Xinjiang Goldwind vs. Schneider Electric SA |
| American Superconductor vs. Nel ASA | American Superconductor vs. Graham | American Superconductor vs. Watts Water Technologies | American Superconductor vs. CVD Equipment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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