Correlation Between Anhui Conch and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both Anhui Conch 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 Anhui Conch and Xinyi Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Conch Cement and Xinyi Glass Holdings, you can compare the effects of market volatilities on Anhui Conch 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 Anhui Conch with a short position of Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and Xinyi Glass.
Diversification Opportunities for Anhui Conch and Xinyi Glass
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Xinyi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement 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 Anhui Conch 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 Anhui Conch Cement 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 Anhui Conch i.e., Anhui Conch and Xinyi Glass go up and down completely randomly.
Pair Corralation between Anhui Conch and Xinyi Glass
Assuming the 90 days horizon Anhui Conch Cement is expected to generate 1.21 times more return on investment than Xinyi Glass. However, Anhui Conch is 1.21 times more volatile than Xinyi Glass Holdings. It trades about -0.05 of its potential returns per unit of risk. Xinyi Glass Holdings is currently generating about -0.17 per unit of risk. If you would invest 275.00 in Anhui Conch Cement on August 31, 2024 and sell it today you would lose (15.00) from holding Anhui Conch Cement or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Conch Cement vs. Xinyi Glass Holdings
Performance |
| Timeline |
| Anhui Conch Cement |
| Xinyi Glass Holdings |
Anhui Conch and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and Xinyi Glass
The main advantage of trading using opposite Anhui Conch and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch 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.| Anhui Conch vs. Xinyi Glass Holdings | Anhui Conch vs. PT Berkah Beton | Anhui Conch vs. Taiga Building Products | Anhui Conch vs. Xinyi Glass Holdings |
| Xinyi Glass vs. Xinyi Glass Holdings | Xinyi Glass vs. CEMATRIX | Xinyi Glass vs. Anhui Conch Cement | Xinyi Glass vs. Basanite |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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