Correlation Between Xinyi Solar and Sunworks
Can any of the company-specific risk be diversified away by investing in both Xinyi Solar and Sunworks 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 Sunworks 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 Sunworks, you can compare the effects of market volatilities on Xinyi Solar and Sunworks 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 Sunworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Solar and Sunworks.
Diversification Opportunities for Xinyi Solar and Sunworks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xinyi and Sunworks is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Solar Holdings and Sunworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunworks 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 Sunworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunworks has no effect on the direction of Xinyi Solar i.e., Xinyi Solar and Sunworks go up and down completely randomly.
Pair Corralation between Xinyi Solar and Sunworks
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. Sunworks
Performance |
| Timeline |
| Xinyi Solar Holdings |
| Sunworks |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xinyi Solar and Sunworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Solar and Sunworks
The main advantage of trading using opposite Xinyi Solar and Sunworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Solar position performs unexpectedly, Sunworks 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 Sunworks will offset losses from the drop in Sunworks' 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 |
| Sunworks vs. Sunrun Inc | Sunworks vs. Maxeon Solar Technologies | Sunworks vs. Canadian Solar | Sunworks vs. First Solar |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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