Correlation Between Xinyi Solar and Solargiga Energy
Can any of the company-specific risk be diversified away by investing in both Xinyi Solar and Solargiga Energy 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 Solargiga Energy 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 Solargiga Energy Holdings, you can compare the effects of market volatilities on Xinyi Solar and Solargiga Energy 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 Solargiga Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Solar and Solargiga Energy.
Diversification Opportunities for Xinyi Solar and Solargiga Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xinyi and Solargiga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Solar Holdings and Solargiga Energy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solargiga Energy Holdings 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 Solargiga Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solargiga Energy Holdings has no effect on the direction of Xinyi Solar i.e., Xinyi Solar and Solargiga Energy go up and down completely randomly.
Pair Corralation between Xinyi Solar and Solargiga Energy
Assuming the 90 days horizon Xinyi Solar Holdings is expected to generate 0.88 times more return on investment than Solargiga Energy. However, Xinyi Solar Holdings is 1.14 times less risky than Solargiga Energy. It trades about -0.04 of its potential returns per unit of risk. Solargiga Energy Holdings is currently generating about -0.05 per unit of risk. If you would invest 2,363 in Xinyi Solar Holdings on October 25, 2024 and sell it today you would lose (1,534) from holding Xinyi Solar Holdings or give up 64.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinyi Solar Holdings vs. Solargiga Energy Holdings
Performance |
| Timeline |
| Xinyi Solar Holdings |
| Solargiga Energy Holdings |
Xinyi Solar and Solargiga Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Solar and Solargiga Energy
The main advantage of trading using opposite Xinyi Solar and Solargiga Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Solar position performs unexpectedly, Solargiga Energy 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 Solargiga Energy will offset losses from the drop in Solargiga Energy'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 |
| Solargiga Energy vs. Summit Midstream | Solargiga Energy vs. Reliance Steel Aluminum | Solargiga Energy vs. Tianjin Capital Environmental | Solargiga Energy vs. HUHUTECH International Group |
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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