Correlation Between Tecnoglass and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both Tecnoglass 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 Tecnoglass and Xinyi Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecnoglass and Xinyi Glass Holdings, you can compare the effects of market volatilities on Tecnoglass 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 Tecnoglass with a short position of Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecnoglass and Xinyi Glass.
Diversification Opportunities for Tecnoglass and Xinyi Glass
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tecnoglass and Xinyi is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tecnoglass 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 Tecnoglass 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 Tecnoglass 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 Tecnoglass i.e., Tecnoglass and Xinyi Glass go up and down completely randomly.
Pair Corralation between Tecnoglass and Xinyi Glass
Given the investment horizon of 90 days Tecnoglass is expected to under-perform the Xinyi Glass. But the stock apears to be less risky and, when comparing its historical volatility, Tecnoglass is 1.0 times less risky than Xinyi Glass. The stock trades about -0.04 of its potential returns per unit of risk. The Xinyi Glass Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,870 in Xinyi Glass Holdings on November 5, 2024 and sell it today you would lose (2.00) from holding Xinyi Glass Holdings or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tecnoglass vs. Xinyi Glass Holdings
Performance |
| Timeline |
| Tecnoglass |
| Xinyi Glass Holdings |
Tecnoglass and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecnoglass and Xinyi Glass
The main advantage of trading using opposite Tecnoglass and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecnoglass 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.| Tecnoglass vs. Atkore International Group | Tecnoglass vs. Clearfield | Tecnoglass vs. Lantheus Holdings | Tecnoglass vs. Allegro Microsystems |
| Xinyi Glass vs. Xinyi Glass Holdings | Xinyi Glass vs. CEMATRIX | Xinyi Glass vs. Anhui Conch Cement | Xinyi Glass vs. Basanite |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |