Correlation Between Grand Canyon and Xinhua Winshare

Can any of the company-specific risk be diversified away by investing in both Grand Canyon and Xinhua Winshare 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 Grand Canyon and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grand Canyon Education and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Grand Canyon 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 Grand Canyon with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canyon and Xinhua Winshare.

Diversification Opportunities for Grand Canyon and Xinhua Winshare

-0.6

Correlation Coefficient

Grand Canyon  Xinhua Winshare

Excellent diversification

The 3 months correlation between Grand and Xinhua is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canyon Education 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 Grand Canyon 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 Grand Canyon Education 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 Grand Canyon i.e., Grand Canyon and Xinhua Winshare go up and down completely randomly.

Pair Corralation between Grand Canyon and Xinhua Winshare

Assuming the 90 days trading horizon Grand Canyon Education is expected to under-perform the Xinhua Winshare. In addition to that, Grand Canyon is 1.22 times more volatile than Xinhua Winshare Publishing. It trades about -0.09 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.08 per unit of volatility. If you would invest  118.00  in Xinhua Winshare Publishing on May 7, 2025 and sell it today you would earn a total of  8.00  from holding Xinhua Winshare Publishing or generate 6.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Grand Canyon Education  vs.  Xinhua Winshare Publishing

Grand Canyon Education

Risk-Adjusted Performance

Weakest

Over the last 90 days Grand Canyon Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Xinhua Winshare Publ

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Xinhua Winshare Publishing are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Xinhua Winshare may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Grand Canyon and Xinhua Winshare

The main advantage of trading using opposite Grand Canyon and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canyon 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.

The idea behind Grand Canyon Education and Xinhua Winshare Publishing 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.