Correlation Between Xinjiang Goldwind and Ushio
Can any of the company-specific risk be diversified away by investing in both Xinjiang Goldwind and Ushio 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 Ushio 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 Ushio Inc, you can compare the effects of market volatilities on Xinjiang Goldwind and Ushio 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 Ushio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Goldwind and Ushio.
Diversification Opportunities for Xinjiang Goldwind and Ushio
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Ushio is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Goldwind Science and Ushio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ushio Inc 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 Ushio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ushio Inc has no effect on the direction of Xinjiang Goldwind i.e., Xinjiang Goldwind and Ushio go up and down completely randomly.
Pair Corralation between Xinjiang Goldwind and Ushio
If you would invest 86.00 in Xinjiang Goldwind Science on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Xinjiang Goldwind Science or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Goldwind Science vs. Ushio Inc
Performance |
| Timeline |
| Xinjiang Goldwind Science |
| Ushio Inc |
Xinjiang Goldwind and Ushio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Goldwind and Ushio
The main advantage of trading using opposite Xinjiang Goldwind and Ushio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Goldwind position performs unexpectedly, Ushio 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 Ushio will offset losses from the drop in Ushio's long position.| Xinjiang Goldwind vs. Shanghai Electric Group | Xinjiang Goldwind vs. American Superconductor | Xinjiang Goldwind vs. Cummins | Xinjiang Goldwind vs. Aquagold International |
| Ushio vs. Xinjiang Goldwind Science | Ushio vs. American Superconductor | Ushio vs. Cummins | Ushio vs. Aquagold International |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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