Correlation Between Western Mining and Xinhua Winshare
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By analyzing existing cross correlation between Western Mining Co and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Western Mining 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 Western Mining with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Xinhua Winshare.
Diversification Opportunities for Western Mining and Xinhua Winshare
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Western and Xinhua is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining Co 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 Western Mining 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 Western Mining Co 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 Western Mining i.e., Western Mining and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Western Mining and Xinhua Winshare
Assuming the 90 days trading horizon Western Mining Co is expected to generate 0.9 times more return on investment than Xinhua Winshare. However, Western Mining Co is 1.11 times less risky than Xinhua Winshare. It trades about 0.07 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.05 per unit of risk. If you would invest 913.00 in Western Mining Co on September 26, 2024 and sell it today you would earn a total of 721.00 from holding Western Mining Co or generate 78.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Western Mining Co vs. Xinhua Winshare Publishing
Performance |
Timeline |
Western Mining |
Xinhua Winshare Publ |
Western Mining and Xinhua Winshare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Mining and Xinhua Winshare
The main advantage of trading using opposite Western Mining and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining 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.Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining vs. Shandong Gold Mining |
Xinhua Winshare vs. Western Mining Co | Xinhua Winshare vs. Chengtun Mining Group | Xinhua Winshare vs. Shengda Mining Co | Xinhua Winshare vs. Pengxin International Mining |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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