Correlation Between Xinjiang Goldwind and Schneider Electric
Can any of the company-specific risk be diversified away by investing in both Xinjiang Goldwind and Schneider Electric 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 Schneider Electric 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 Schneider Electric SE, you can compare the effects of market volatilities on Xinjiang Goldwind and Schneider Electric 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 Schneider Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Goldwind and Schneider Electric.
Diversification Opportunities for Xinjiang Goldwind and Schneider Electric
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinjiang and Schneider is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Goldwind Science and Schneider Electric SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schneider Electric 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 Schneider Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schneider Electric has no effect on the direction of Xinjiang Goldwind i.e., Xinjiang Goldwind and Schneider Electric go up and down completely randomly.
Pair Corralation between Xinjiang Goldwind and Schneider Electric
Assuming the 90 days horizon Xinjiang Goldwind Science is expected to under-perform the Schneider Electric. In addition to that, Xinjiang Goldwind is 1.18 times more volatile than Schneider Electric SE. It trades about -0.12 of its total potential returns per unit of risk. Schneider Electric SE is currently generating about -0.04 per unit of volatility. If you would invest 25,968 in Schneider Electric SE on November 27, 2024 and sell it today you would lose (968.00) from holding Schneider Electric SE or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Goldwind Science vs. Schneider Electric SE
Performance |
| Timeline |
| Xinjiang Goldwind Science |
| Schneider Electric |
Xinjiang Goldwind and Schneider Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Goldwind and Schneider Electric
The main advantage of trading using opposite Xinjiang Goldwind and Schneider Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Goldwind position performs unexpectedly, Schneider Electric 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 Schneider Electric will offset losses from the drop in Schneider Electric's long position.| Xinjiang Goldwind vs. Shanghai Electric Group | Xinjiang Goldwind vs. American Superconductor | Xinjiang Goldwind vs. Cummins |
| Schneider Electric vs. SMC Corp Japan | Schneider Electric vs. Atlas Copco AB | Schneider Electric vs. Fanuc | Schneider Electric vs. Ebara Corp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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