Correlation Between Guangdong Cellwise and Xinhua Winshare
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By analyzing existing cross correlation between Guangdong Cellwise Microelectronics and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Guangdong Cellwise 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 Guangdong Cellwise with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Cellwise and Xinhua Winshare.
Diversification Opportunities for Guangdong Cellwise and Xinhua Winshare
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Xinhua is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Cellwise Microelectr 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 Guangdong Cellwise 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 Guangdong Cellwise Microelectronics 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 Guangdong Cellwise i.e., Guangdong Cellwise and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Guangdong Cellwise and Xinhua Winshare
Assuming the 90 days trading horizon Guangdong Cellwise is expected to generate 6.21 times less return on investment than Xinhua Winshare. In addition to that, Guangdong Cellwise is 1.92 times more volatile than Xinhua Winshare Publishing. It trades about 0.03 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.3 per unit of volatility. If you would invest 1,432 in Xinhua Winshare Publishing on October 4, 2024 and sell it today you would earn a total of 153.00 from holding Xinhua Winshare Publishing or generate 10.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Cellwise Microelectr vs. Xinhua Winshare Publishing
Performance |
Timeline |
Guangdong Cellwise |
Xinhua Winshare Publ |
Guangdong Cellwise and Xinhua Winshare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Cellwise and Xinhua Winshare
The main advantage of trading using opposite Guangdong Cellwise and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Cellwise 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.Guangdong Cellwise vs. Industrial and Commercial | Guangdong Cellwise vs. China Construction Bank | Guangdong Cellwise vs. Bank of China | Guangdong Cellwise vs. Agricultural Bank of |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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