Correlation Between Xinyuan Real and Trinity Place
Can any of the company-specific risk be diversified away by investing in both Xinyuan Real and Trinity Place 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 Trinity Place 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 Trinity Place Holdings, you can compare the effects of market volatilities on Xinyuan Real and Trinity Place 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 Trinity Place. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyuan Real and Trinity Place.
Diversification Opportunities for Xinyuan Real and Trinity Place
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinyuan and Trinity is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Xinyuan Real Estate and Trinity Place Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Place Holdings 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 Trinity Place. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Place Holdings has no effect on the direction of Xinyuan Real i.e., Xinyuan Real and Trinity Place go up and down completely randomly.
Pair Corralation between Xinyuan Real and Trinity Place
If you would invest 5.61 in Trinity Place Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Trinity Place Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Xinyuan Real Estate vs. Trinity Place Holdings
Performance |
| Timeline |
| Xinyuan Real Estate |
| Trinity Place Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xinyuan Real and Trinity Place Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyuan Real and Trinity Place
The main advantage of trading using opposite Xinyuan Real and Trinity Place positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyuan Real position performs unexpectedly, Trinity Place 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 Trinity Place will offset losses from the drop in Trinity Place's long position.| Xinyuan Real vs. AMREP | Xinyuan Real vs. Alset Ehome International | Xinyuan Real vs. Landsea Homes Corp | Xinyuan Real vs. Bayport International Holdings |
| Trinity Place vs. Xinyuan Real Estate | Trinity Place vs. AMREP | Trinity Place vs. Alset Ehome International | Trinity Place vs. Landsea Homes Corp |
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
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance |