Correlation Between Ibstock Plc and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both Ibstock 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 Ibstock 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 Ibstock Plc and Xinyi Glass Holdings, you can compare the effects of market volatilities on Ibstock 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 Ibstock Plc with a short position of Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibstock Plc and Xinyi Glass.
Diversification Opportunities for Ibstock Plc and Xinyi Glass
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ibstock and Xinyi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ibstock Plc 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 Ibstock 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 Ibstock Plc 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 Ibstock Plc i.e., Ibstock Plc and Xinyi Glass go up and down completely randomly.
Pair Corralation between Ibstock Plc and Xinyi Glass
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 | Flat |
| Strength | Insignificant |
| Accuracy | 14.29% |
| Values | Daily Returns |
Ibstock Plc vs. Xinyi Glass Holdings
Performance |
| Timeline |
| Ibstock Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xinyi Glass Holdings |
Ibstock Plc and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibstock Plc and Xinyi Glass
The main advantage of trading using opposite Ibstock Plc and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibstock 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.| Ibstock Plc vs. Xinyi Glass Holdings | Ibstock Plc vs. CEMATRIX | Ibstock Plc vs. Anhui Conch Cement | Ibstock Plc vs. Basanite |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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