Correlation Between Xinyi Solar and ISun
Can any of the company-specific risk be diversified away by investing in both Xinyi Solar and ISun 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 Xinyi Solar and ISun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinyi Solar Holdings and ISun Inc, you can compare the effects of market volatilities on Xinyi Solar and ISun 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 Xinyi Solar with a short position of ISun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Solar and ISun.
Diversification Opportunities for Xinyi Solar and ISun
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xinyi and ISun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Solar Holdings and ISun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISun Inc and Xinyi Solar 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 Xinyi Solar Holdings are associated (or correlated) with ISun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISun Inc has no effect on the direction of Xinyi Solar i.e., Xinyi Solar and ISun go up and down completely randomly.
Pair Corralation between Xinyi Solar and ISun
If you would invest 822.00 in Xinyi Solar Holdings on November 27, 2024 and sell it today you would earn a total of 30.00 from holding Xinyi Solar Holdings or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Xinyi Solar Holdings vs. ISun Inc
Performance |
| Timeline |
| Xinyi Solar Holdings |
| ISun Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xinyi Solar and ISun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Solar and ISun
The main advantage of trading using opposite Xinyi Solar and ISun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Solar position performs unexpectedly, ISun 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 ISun will offset losses from the drop in ISun's long position.| Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. Xinyi Solar Holdings | Xinyi Solar vs. Sunrun Inc | Xinyi Solar vs. SMA Solar Technology |
| ISun vs. Polar Power | ISun vs. VivoPower International PLC | ISun vs. Pioneer Power Solutions | ISun vs. Beam Global |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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