Correlation Between 360 Finance and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both 360 Finance 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 360 Finance and Xinyi Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 360 Finance and Xinyi Glass Holdings, you can compare the effects of market volatilities on 360 Finance 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 360 Finance with a short position of Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Xinyi Glass.
Diversification Opportunities for 360 Finance and Xinyi Glass
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 360 and Xinyi is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance 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 360 Finance 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 360 Finance 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 360 Finance i.e., 360 Finance and Xinyi Glass go up and down completely randomly.
Pair Corralation between 360 Finance and Xinyi Glass
Given the investment horizon of 90 days 360 Finance is expected to generate 0.36 times more return on investment than Xinyi Glass. However, 360 Finance is 2.75 times less risky than Xinyi Glass. It trades about 0.21 of its potential returns per unit of risk. Xinyi Glass Holdings is currently generating about 0.07 per unit of risk. If you would invest 1,945 in 360 Finance on October 26, 2024 and sell it today you would earn a total of 2,050 from holding 360 Finance or generate 105.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
360 Finance vs. Xinyi Glass Holdings
Performance |
| Timeline |
| 360 Finance |
| Xinyi Glass Holdings |
360 Finance and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Finance and Xinyi Glass
The main advantage of trading using opposite 360 Finance and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance 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.| 360 Finance vs. Freedom Holding Corp | 360 Finance vs. Procter Gamble | 360 Finance vs. PennantPark Floating Rate | 360 Finance vs. Hillman Solutions Corp |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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