Correlation Between Xinhua Winshare and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and MOVIE GAMES 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 Xinhua Winshare and MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and MOVIE GAMES SA, you can compare the effects of market volatilities on Xinhua Winshare and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and MOVIE GAMES.
Diversification Opportunities for Xinhua Winshare and MOVIE GAMES
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinhua and MOVIE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and MOVIE GAMES go up and down completely randomly.
Pair Corralation between Xinhua Winshare and MOVIE GAMES
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the MOVIE GAMES. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 1.45 times less risky than MOVIE GAMES. The stock trades about -0.11 of its potential returns per unit of risk. The MOVIE GAMES SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 356.00 in MOVIE GAMES SA on December 26, 2024 and sell it today you would earn a total of 44.00 from holding MOVIE GAMES SA or generate 12.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xinhua Winshare Publishing vs. MOVIE GAMES SA
Performance |
Timeline |
Xinhua Winshare Publ |
MOVIE GAMES SA |
Xinhua Winshare and MOVIE GAMES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinhua Winshare and MOVIE GAMES
The main advantage of trading using opposite Xinhua Winshare and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.Xinhua Winshare vs. AIR PRODCHEMICALS | Xinhua Winshare vs. ANTA Sports Products | Xinhua Winshare vs. TRAVEL LEISURE DL 01 | Xinhua Winshare vs. Lifeway Foods |
MOVIE GAMES vs. American Public Education | MOVIE GAMES vs. TAL Education Group | MOVIE GAMES vs. NorAm Drilling AS | MOVIE GAMES vs. DeVry Education Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |