Correlation Between Xinyuan Real and Harbor Custom
Can any of the company-specific risk be diversified away by investing in both Xinyuan Real and Harbor Custom 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 Harbor Custom 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 Harbor Custom Development, you can compare the effects of market volatilities on Xinyuan Real and Harbor Custom 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 Harbor Custom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyuan Real and Harbor Custom.
Diversification Opportunities for Xinyuan Real and Harbor Custom
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinyuan and Harbor is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xinyuan Real Estate and Harbor Custom Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Custom Development 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 Harbor Custom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Custom Development has no effect on the direction of Xinyuan Real i.e., Xinyuan Real and Harbor Custom go up and down completely randomly.
Pair Corralation between Xinyuan Real and Harbor Custom
If you would invest 513.00 in Harbor Custom Development on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Harbor Custom Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Xinyuan Real Estate vs. Harbor Custom Development
Performance |
| Timeline |
| Xinyuan Real Estate |
| Harbor Custom Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xinyuan Real and Harbor Custom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyuan Real and Harbor Custom
The main advantage of trading using opposite Xinyuan Real and Harbor Custom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyuan Real position performs unexpectedly, Harbor Custom 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 Harbor Custom will offset losses from the drop in Harbor Custom's long position.| Xinyuan Real vs. Investcorp Credit Management | Xinyuan Real vs. Medalist Diversified Reit | Xinyuan Real vs. Aquagold International | Xinyuan Real vs. Morningstar Unconstrained Allocation |
| Harbor Custom vs. Presidio Property Trust | Harbor Custom vs. FAT Brands | Harbor Custom vs. Fortress Biotech Pref |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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