Correlation Between Xinhua Winshare and Shanghai Yanpu
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Xinhua Winshare and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Shanghai Yanpu.
Diversification Opportunities for Xinhua Winshare and Shanghai Yanpu
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinhua and Shanghai is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Shanghai Yanpu
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.47 times more return on investment than Shanghai Yanpu. However, Xinhua Winshare Publishing is 2.11 times less risky than Shanghai Yanpu. It trades about 0.45 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.21 per unit of risk. If you would invest 1,382 in Xinhua Winshare Publishing on September 23, 2024 and sell it today you would earn a total of 199.00 from holding Xinhua Winshare Publishing or generate 14.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xinhua Winshare Publishing vs. Shanghai Yanpu Metal
Performance |
Timeline |
Xinhua Winshare Publ |
Shanghai Yanpu Metal |
Xinhua Winshare and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinhua Winshare and Shanghai Yanpu
The main advantage of trading using opposite Xinhua Winshare and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.Xinhua Winshare vs. PetroChina Co Ltd | Xinhua Winshare vs. China Mobile Limited | Xinhua Winshare vs. CNOOC Limited | Xinhua Winshare vs. Ping An Insurance |
Shanghai Yanpu vs. China Life Insurance | Shanghai Yanpu vs. Cinda Securities Co | Shanghai Yanpu vs. Piotech Inc A | Shanghai Yanpu vs. Dongxing Sec Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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