Correlation Between Xinhua Winshare and Penyao Environmental
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Penyao Environmental Protection, you can compare the effects of market volatilities on Xinhua Winshare and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Penyao Environmental.
Diversification Opportunities for Xinhua Winshare and Penyao Environmental
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinhua and Penyao is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Penyao Environmental go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Penyao Environmental
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.3 times more return on investment than Penyao Environmental. However, Xinhua Winshare Publishing is 3.3 times less risky than Penyao Environmental. It trades about 0.41 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.03 per unit of risk. If you would invest 1,395 in Xinhua Winshare Publishing on September 25, 2024 and sell it today you would earn a total of 211.00 from holding Xinhua Winshare Publishing or generate 15.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Xinhua Winshare Publishing vs. Penyao Environmental Protectio
Performance |
Timeline |
Xinhua Winshare Publ |
Penyao Environmental |
Xinhua Winshare and Penyao Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinhua Winshare and Penyao Environmental
The main advantage of trading using opposite Xinhua Winshare and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.Xinhua Winshare vs. Cowealth Medical China | Xinhua Winshare vs. Fuzhou Rockchip Electronics | Xinhua Winshare vs. Guangzhou Boji Medical | Xinhua Winshare vs. Beijing Wandong Medical |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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