Correlation Between Archer Aviation and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both Archer Aviation and Xinyi Glass 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 Archer Aviation and Xinyi Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Archer Aviation and Xinyi Glass Holdings, you can compare the effects of market volatilities on Archer Aviation and Xinyi Glass 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 Archer Aviation with a short position of Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Archer Aviation and Xinyi Glass.
Diversification Opportunities for Archer Aviation and Xinyi Glass
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Archer and Xinyi is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Archer Aviation and Xinyi Glass Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Glass Holdings and Archer Aviation 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 Archer Aviation are associated (or correlated) with Xinyi Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Glass Holdings has no effect on the direction of Archer Aviation i.e., Archer Aviation and Xinyi Glass go up and down completely randomly.
Pair Corralation between Archer Aviation and Xinyi Glass
Given the investment horizon of 90 days Archer Aviation is expected to generate 4.81 times less return on investment than Xinyi Glass. But when comparing it to its historical volatility, Archer Aviation is 2.72 times less risky than Xinyi Glass. It trades about 0.05 of its potential returns per unit of risk. Xinyi Glass Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Xinyi Glass Holdings on November 5, 2024 and sell it today you would earn a total of 46.00 from holding Xinyi Glass Holdings or generate 97.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 79.17% |
| Values | Daily Returns |
Archer Aviation vs. Xinyi Glass Holdings
Performance |
| Timeline |
| Archer Aviation |
| Xinyi Glass Holdings |
Archer Aviation and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Archer Aviation and Xinyi Glass
The main advantage of trading using opposite Archer Aviation and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Archer Aviation position performs unexpectedly, Xinyi Glass 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 Xinyi Glass will offset losses from the drop in Xinyi Glass' long position.| Archer Aviation vs. Vertical Aerospace | Archer Aviation vs. Ehang Holdings | Archer Aviation vs. Rocket Lab USA | Archer Aviation vs. Lilium NV |
| Xinyi Glass vs. Anhui Conch Cement | Xinyi Glass vs. CEMEX SAB de | Xinyi Glass vs. CEMATRIX | Xinyi Glass vs. Anhui Conch Cement |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |