Correlation Between Expand Energy and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both Expand Energy and Xinyi Solar 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 Expand Energy and Xinyi Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Xinyi Solar Holdings, you can compare the effects of market volatilities on Expand Energy and Xinyi Solar 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 Expand Energy with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Xinyi Solar.
Diversification Opportunities for Expand Energy and Xinyi Solar
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Expand and Xinyi is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Xinyi Solar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Solar Holdings and Expand 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 Expand Energy are associated (or correlated) with Xinyi Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Solar Holdings has no effect on the direction of Expand Energy i.e., Expand Energy and Xinyi Solar go up and down completely randomly.
Pair Corralation between Expand Energy and Xinyi Solar
Assuming the 90 days horizon Expand Energy is expected to generate 0.63 times more return on investment than Xinyi Solar. However, Expand Energy is 1.6 times less risky than Xinyi Solar. It trades about 0.38 of its potential returns per unit of risk. Xinyi Solar Holdings is currently generating about 0.22 per unit of risk. If you would invest 8,963 in Expand Energy on October 24, 2024 and sell it today you would earn a total of 1,169 from holding Expand Energy or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Expand Energy vs. Xinyi Solar Holdings
Performance |
| Timeline |
| Expand Energy |
| Xinyi Solar Holdings |
Expand Energy and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Xinyi Solar
The main advantage of trading using opposite Expand Energy and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Xinyi Solar 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 Solar will offset losses from the drop in Xinyi Solar's long position.| Expand Energy vs. NETGEAR | Expand Energy vs. IPG Photonics | Expand Energy vs. Yuexiu Transport Infrastructure | Expand Energy vs. United Microelectronics |
| Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. Xinyi Solar Holdings | Xinyi Solar vs. Sunrun Inc | Xinyi Solar vs. SMA Solar Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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