Correlation Between Energy and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both Energy 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 Energy and Xinyi Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy and Water and Xinyi Glass Holdings, you can compare the effects of market volatilities on Energy 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 Energy with a short position of Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy and Xinyi Glass.
Diversification Opportunities for Energy and Xinyi Glass
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Energy and Xinyi is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Energy and Water 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 Energy 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 Energy and Water 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 Energy i.e., Energy and Xinyi Glass go up and down completely randomly.
Pair Corralation between Energy and Xinyi Glass
Given the investment horizon of 90 days Energy and Water is expected to under-perform the Xinyi Glass. In addition to that, Energy is 1.9 times more volatile than Xinyi Glass Holdings. It trades about -0.05 of its total potential returns per unit of risk. Xinyi Glass Holdings is currently generating about 0.07 per unit of volatility. 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 Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Energy and Water vs. Xinyi Glass Holdings
Performance |
| Timeline |
| Energy and Water |
| Xinyi Glass Holdings |
Energy and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy and Xinyi Glass
The main advantage of trading using opposite Energy and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy 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.| Energy vs. Vow ASA | Energy vs. Eestech | Energy vs. One World Universe | Energy vs. Bion Environmental Technologies |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |