Correlation Between Xinjiang Goldwind and Amaero International

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

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

Diversification Opportunities for Xinjiang Goldwind and Amaero International

-0.59

Correlation Coefficient

Xinjiang Goldwind  Amaero International

Excellent diversification

The 3 months correlation between Xinjiang and Amaero is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Goldwind Science and Amaero International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amaero International and Xinjiang Goldwind 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 Xinjiang Goldwind Science are associated (or correlated) with Amaero International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amaero International has no effect on the direction of Xinjiang Goldwind i.e., Xinjiang Goldwind and Amaero International go up and down completely randomly.

Pair Corralation between Xinjiang Goldwind and Amaero International

Assuming the 90 days horizon Xinjiang Goldwind Science is expected to under-perform the Amaero International. But the pink sheet apears to be less risky and, when comparing its historical volatility, Xinjiang Goldwind Science is 1.96 times less risky than Amaero International. The pink sheet trades about -0.2 of its potential returns per unit of risk. The Amaero International is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Amaero International on December 1, 2024 and sell it today you would lose (11.00) from holding Amaero International or give up 44.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	69.84%
Values	Daily Returns

Xinjiang Goldwind Science  vs.  Amaero International

Xinjiang Goldwind Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xinjiang Goldwind Science has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Amaero International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amaero International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Xinjiang Goldwind and Amaero International

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

The idea behind Xinjiang Goldwind Science and Amaero International 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 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.