Correlation Between CRH PLC and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both CRH PLC 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 CRH PLC and Xinyi Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRH PLC ADR and Xinyi Glass Holdings, you can compare the effects of market volatilities on CRH PLC 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 CRH PLC with a short position of Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRH PLC and Xinyi Glass.
Diversification Opportunities for CRH PLC and Xinyi Glass
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CRH and Xinyi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CRH PLC ADR 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 CRH PLC 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 CRH PLC ADR 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 CRH PLC i.e., CRH PLC and Xinyi Glass go up and down completely randomly.
Pair Corralation between CRH PLC and Xinyi Glass
Considering the 90-day investment horizon CRH PLC is expected to generate 3.15 times less return on investment than Xinyi Glass. But when comparing it to its historical volatility, CRH PLC ADR is 5.29 times less risky than Xinyi Glass. It trades about 0.12 of its potential returns per unit of risk. Xinyi Glass Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Xinyi Glass Holdings on October 26, 2024 and sell it today you would earn a total of 28.00 from holding Xinyi Glass Holdings or generate 43.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
CRH PLC ADR vs. Xinyi Glass Holdings
Performance |
| Timeline |
| CRH PLC ADR |
| Xinyi Glass Holdings |
CRH PLC and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRH PLC and Xinyi Glass
The main advantage of trading using opposite CRH PLC and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRH PLC 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.| CRH PLC vs. Martin Marietta Materials | CRH PLC vs. Eagle Materials | CRH PLC vs. Summit Materials | CRH PLC vs. United States Lime |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |