Correlation Between Xinhua Winshare and Compagnie Des
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Compagnie Des 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 Compagnie Des 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 Compagnie des Alpes, you can compare the effects of market volatilities on Xinhua Winshare and Compagnie Des 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 Compagnie Des. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Compagnie Des.
Diversification Opportunities for Xinhua Winshare and Compagnie Des
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinhua and Compagnie is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Compagnie des Alpes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie des Alpes 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 Compagnie Des. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie des Alpes has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Compagnie Des go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Compagnie Des
Assuming the 90 days horizon Xinhua Winshare is expected to generate 1.3 times less return on investment than Compagnie Des. In addition to that, Xinhua Winshare is 1.71 times more volatile than Compagnie des Alpes. It trades about 0.07 of its total potential returns per unit of risk. Compagnie des Alpes is currently generating about 0.15 per unit of volatility. If you would invest 1,450 in Compagnie des Alpes on October 25, 2024 and sell it today you would earn a total of 160.00 from holding Compagnie des Alpes or generate 11.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xinhua Winshare Publishing vs. Compagnie des Alpes
Performance |
Timeline |
Xinhua Winshare Publ |
Compagnie des Alpes |
Xinhua Winshare and Compagnie Des Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinhua Winshare and Compagnie Des
The main advantage of trading using opposite Xinhua Winshare and Compagnie Des positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Compagnie Des 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 Compagnie Des will offset losses from the drop in Compagnie Des' long position.Xinhua Winshare vs. China Datang | Xinhua Winshare vs. Western Copper and | Xinhua Winshare vs. Stewart Information Services | Xinhua Winshare vs. GALENA MINING LTD |
Compagnie Des vs. Perseus Mining Limited | Compagnie Des vs. Coeur Mining | Compagnie Des vs. IMPERIAL TOBACCO | Compagnie Des vs. GREENX METALS LTD |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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