Correlation Between Xinyuan Real and Maui Land
Can any of the company-specific risk be diversified away by investing in both Xinyuan Real and Maui Land 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 Maui Land 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 Maui Land Pineapple, you can compare the effects of market volatilities on Xinyuan Real and Maui Land 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 Maui Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyuan Real and Maui Land.
Diversification Opportunities for Xinyuan Real and Maui Land
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinyuan and Maui is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xinyuan Real Estate and Maui Land Pineapple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maui Land Pineapple 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 Maui Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maui Land Pineapple has no effect on the direction of Xinyuan Real i.e., Xinyuan Real and Maui Land go up and down completely randomly.
Pair Corralation between Xinyuan Real and Maui Land
Considering the 90-day investment horizon Xinyuan Real is expected to generate 2.44 times less return on investment than Maui Land. In addition to that, Xinyuan Real is 2.17 times more volatile than Maui Land Pineapple. It trades about 0.02 of its total potential returns per unit of risk. Maui Land Pineapple is currently generating about 0.09 per unit of volatility. If you would invest 863.00 in Maui Land Pineapple on August 27, 2024 and sell it today you would earn a total of 1,505 from holding Maui Land Pineapple or generate 174.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinyuan Real Estate vs. Maui Land Pineapple
Performance |
| Timeline |
| Xinyuan Real Estate |
| Maui Land Pineapple |
Xinyuan Real and Maui Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyuan Real and Maui Land
The main advantage of trading using opposite Xinyuan Real and Maui Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyuan Real position performs unexpectedly, Maui Land 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 Maui Land will offset losses from the drop in Maui Land'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 |
| Maui Land vs. New England Realty | Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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