Correlation Between WINHA INTERNATIONAL and Cxj Group

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Can any of the company-specific risk be diversified away by investing in both WINHA INTERNATIONAL and Cxj Group 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 WINHA INTERNATIONAL and Cxj Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WINHA INTERNATIONAL GROUP and Cxj Group Co, you can compare the effects of market volatilities on WINHA INTERNATIONAL and Cxj Group 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 WINHA INTERNATIONAL with a short position of Cxj Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of WINHA INTERNATIONAL and Cxj Group.

Diversification Opportunities for WINHA INTERNATIONAL and Cxj Group

0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between WINHA and Cxj is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding WINHA INTERNATIONAL GROUP and Cxj Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cxj Group and WINHA INTERNATIONAL 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 WINHA INTERNATIONAL GROUP are associated (or correlated) with Cxj Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cxj Group has no effect on the direction of WINHA INTERNATIONAL i.e., WINHA INTERNATIONAL and Cxj Group go up and down completely randomly.

Pair Corralation between WINHA INTERNATIONAL and Cxj Group

Given the investment horizon of 90 days WINHA INTERNATIONAL is expected to generate 5.23 times less return on investment than Cxj Group. But when comparing it to its historical volatility, WINHA INTERNATIONAL GROUP is 3.49 times less risky than Cxj Group. It trades about 0.09 of its potential returns per unit of risk. Cxj Group Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.80  in Cxj Group Co on August 17, 2025 and sell it today you would earn a total of  188.20  from holding Cxj Group Co or generate 23525.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

WINHA INTERNATIONAL GROUP  vs.  Cxj Group Co

 Performance 
       Timeline  
WINHA INTERNATIONAL 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in WINHA INTERNATIONAL GROUP are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly sluggish basic indicators, WINHA INTERNATIONAL demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Cxj Group 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cxj Group Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Cxj Group revealed solid returns over the last few months and may actually be approaching a breakup point.

WINHA INTERNATIONAL and Cxj Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WINHA INTERNATIONAL and Cxj Group

The main advantage of trading using opposite WINHA INTERNATIONAL and Cxj Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WINHA INTERNATIONAL position performs unexpectedly, Cxj Group 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 Cxj Group will offset losses from the drop in Cxj Group's long position.
The idea behind WINHA INTERNATIONAL GROUP and Cxj Group Co 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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