Correlation Between Information Services and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both Information Services 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 Information Services and Xinyi Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Information Services International Dentsu and Xinyi Solar Holdings, you can compare the effects of market volatilities on Information Services 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 Information Services with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Information Services and Xinyi Solar.
Diversification Opportunities for Information Services and Xinyi Solar
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Information and Xinyi is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Information Services Internati 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 Information Services 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 Information Services International Dentsu 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 Information Services i.e., Information Services and Xinyi Solar go up and down completely randomly.
Pair Corralation between Information Services and Xinyi Solar
Assuming the 90 days horizon Information Services International Dentsu is expected to generate 0.34 times more return on investment than Xinyi Solar. However, Information Services International Dentsu is 2.92 times less risky than Xinyi Solar. It trades about 0.25 of its potential returns per unit of risk. Xinyi Solar Holdings is currently generating about -0.04 per unit of risk. If you would invest 3,280 in Information Services International Dentsu on September 12, 2024 and sell it today you would earn a total of 320.00 from holding Information Services International Dentsu or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Information Services Internati vs. Xinyi Solar Holdings
Performance |
| Timeline |
| Information Services |
| Xinyi Solar Holdings |
Information Services and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Information Services and Xinyi Solar
The main advantage of trading using opposite Information Services and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Information Services 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.| Information Services vs. ETFS Coffee ETC | Information Services vs. Alaska Air Group | Information Services vs. Pentair plc | Information Services vs. Corsair Gaming |
| Xinyi Solar vs. Sunrun Inc | Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. Superior Plus Corp | Xinyi Solar vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance |