Correlation Between Maui Land and Xinyuan Real
Can any of the company-specific risk be diversified away by investing in both Maui Land and Xinyuan Real 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 Maui Land and Xinyuan Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maui Land Pineapple and Xinyuan Real Estate, you can compare the effects of market volatilities on Maui Land and Xinyuan Real 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 Maui Land with a short position of Xinyuan Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and Xinyuan Real.
Diversification Opportunities for Maui Land and Xinyuan Real
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maui and Xinyuan is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and Xinyuan Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyuan Real Estate and Maui Land 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 Maui Land Pineapple are associated (or correlated) with Xinyuan Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyuan Real Estate has no effect on the direction of Maui Land i.e., Maui Land and Xinyuan Real go up and down completely randomly.
Pair Corralation between Maui Land and Xinyuan Real
Considering the 90-day investment horizon Maui Land Pineapple is expected to generate 1.36 times more return on investment than Xinyuan Real. However, Maui Land is 1.36 times more volatile than Xinyuan Real Estate. It trades about 0.14 of its potential returns per unit of risk. Xinyuan Real Estate is currently generating about -0.26 per unit of risk. If you would invest 2,199 in Maui Land Pineapple on September 1, 2024 and sell it today you would earn a total of 226.00 from holding Maui Land Pineapple or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maui Land Pineapple vs. Xinyuan Real Estate
Performance |
| Timeline |
| Maui Land Pineapple |
| Xinyuan Real Estate |
Maui Land and Xinyuan Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maui Land and Xinyuan Real
The main advantage of trading using opposite Maui Land and Xinyuan Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, Xinyuan Real 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 Xinyuan Real will offset losses from the drop in Xinyuan Real's long position.| Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord | Maui Land vs. Transcontinental Realty Investors |
| Xinyuan Real vs. AMREP | Xinyuan Real vs. Alset Ehome International | Xinyuan Real vs. Landsea Homes Corp | Xinyuan Real vs. Bayport International Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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