Correlation Between Xinyuan Real and Frp Holdings
Can any of the company-specific risk be diversified away by investing in both Xinyuan Real and Frp Holdings 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 Xinyuan Real and Frp Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinyuan Real Estate and Frp Holdings Ord, you can compare the effects of market volatilities on Xinyuan Real and Frp Holdings 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 Xinyuan Real with a short position of Frp Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyuan Real and Frp Holdings.
Diversification Opportunities for Xinyuan Real and Frp Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinyuan and Frp is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Xinyuan Real Estate and Frp Holdings Ord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frp Holdings Ord and Xinyuan Real 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 Xinyuan Real Estate are associated (or correlated) with Frp Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frp Holdings Ord has no effect on the direction of Xinyuan Real i.e., Xinyuan Real and Frp Holdings go up and down completely randomly.
Pair Corralation between Xinyuan Real and Frp Holdings
Considering the 90-day investment horizon Xinyuan Real Estate is expected to under-perform the Frp Holdings. In addition to that, Xinyuan Real is 3.9 times more volatile than Frp Holdings Ord. It trades about -0.26 of its total potential returns per unit of risk. Frp Holdings Ord is currently generating about 0.05 per unit of volatility. If you would invest 3,141 in Frp Holdings Ord on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Frp Holdings Ord or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinyuan Real Estate vs. Frp Holdings Ord
Performance |
| Timeline |
| Xinyuan Real Estate |
| Frp Holdings Ord |
Xinyuan Real and Frp Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyuan Real and Frp Holdings
The main advantage of trading using opposite Xinyuan Real and Frp Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyuan Real position performs unexpectedly, Frp Holdings 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 Frp Holdings will offset losses from the drop in Frp Holdings' long position.| Xinyuan Real vs. AMREP | Xinyuan Real vs. Alset Ehome International | Xinyuan Real vs. Landsea Homes Corp | Xinyuan Real vs. Bayport International Holdings |
| Frp Holdings vs. Transcontinental Realty Investors | Frp Holdings vs. Anywhere Real Estate | Frp Holdings vs. Re Max Holding | Frp Holdings vs. New England Realty |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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