Correlation Between Shapeways Holdings, and Xinjiang Goldwind

Can any of the company-specific risk be diversified away by investing in both Shapeways Holdings, and Xinjiang Goldwind 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 Shapeways Holdings, and Xinjiang Goldwind into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shapeways Holdings, Common and Xinjiang Goldwind Science, you can compare the effects of market volatilities on Shapeways Holdings, and Xinjiang Goldwind 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 Shapeways Holdings, with a short position of Xinjiang Goldwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapeways Holdings, and Xinjiang Goldwind.

Diversification Opportunities for Shapeways Holdings, and Xinjiang Goldwind

-0.11

Correlation Coefficient

Shapeways Holdings,  Xinjiang Goldwind

Good diversification

The 3 months correlation between Shapeways and Xinjiang is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shapeways Holdings, Common and Xinjiang Goldwind Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Goldwind Science and Shapeways Holdings, 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 Shapeways Holdings, Common are associated (or correlated) with Xinjiang Goldwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Goldwind Science has no effect on the direction of Shapeways Holdings, i.e., Shapeways Holdings, and Xinjiang Goldwind go up and down completely randomly.

Pair Corralation between Shapeways Holdings, and Xinjiang Goldwind

Given the investment horizon of 90 days Shapeways Holdings, Common is expected to under-perform the Xinjiang Goldwind. In addition to that, Shapeways Holdings, is 2.06 times more volatile than Xinjiang Goldwind Science. It trades about -0.22 of its total potential returns per unit of risk. Xinjiang Goldwind Science is currently generating about 0.11 per unit of volatility. If you would invest  80.00  in Xinjiang Goldwind Science on September 26, 2024 and sell it today you would earn a total of  8.00  from holding Xinjiang Goldwind Science or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Shapeways Holdings, Common  vs.  Xinjiang Goldwind Science

Shapeways Holdings,

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shapeways Holdings, Common are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Shapeways Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

Xinjiang Goldwind Science

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Xinjiang Goldwind Science are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Xinjiang Goldwind reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shapeways Holdings, and Xinjiang Goldwind

The main advantage of trading using opposite Shapeways Holdings, and Xinjiang Goldwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapeways Holdings, position performs unexpectedly, Xinjiang Goldwind 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 Xinjiang Goldwind will offset losses from the drop in Xinjiang Goldwind's long position.

The idea behind Shapeways Holdings, Common and Xinjiang Goldwind Science pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.