Correlation Between DAX Index and Xinyi Solar
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By analyzing existing cross correlation between DAX Index and Xinyi Solar Holdings, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Xinyi Solar.
Diversification Opportunities for DAX Index and Xinyi Solar
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Xinyi is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Xinyi Solar go up and down completely randomly.
Pair Corralation between DAX Index and Xinyi Solar
Assuming the 90 days trading horizon DAX Index is expected to generate 4.32 times less return on investment than Xinyi Solar. But when comparing it to its historical volatility, DAX Index is 4.31 times less risky than Xinyi Solar. It trades about 0.18 of its potential returns per unit of risk. Xinyi Solar Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Xinyi Solar Holdings on December 1, 2024 and sell it today you would earn a total of 6.00 from holding Xinyi Solar Holdings or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Xinyi Solar Holdings
Performance |
| Timeline |
DAX Index and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Xinyi Solar Holdings
Pair trading matchups for Xinyi Solar
Pair Trading with DAX Index and Xinyi Solar
The main advantage of trading using opposite DAX Index and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Phibro Animal Health | DAX Index vs. Cardinal Health | DAX Index vs. Siemens Healthineers AG | DAX Index vs. CARDINAL HEALTH |
| Xinyi Solar vs. Chiba Bank | Xinyi Solar vs. REVO INSURANCE SPA | Xinyi Solar vs. Data3 Limited | Xinyi Solar vs. Linedata Services SA |
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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