Correlation Between Xinyi Solar and Newhydrogen
Can any of the company-specific risk be diversified away by investing in both Xinyi Solar and Newhydrogen 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 Newhydrogen 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 Newhydrogen, you can compare the effects of market volatilities on Xinyi Solar and Newhydrogen 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 Newhydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Solar and Newhydrogen.
Diversification Opportunities for Xinyi Solar and Newhydrogen
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinyi and Newhydrogen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Solar Holdings and Newhydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newhydrogen 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 Newhydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newhydrogen has no effect on the direction of Xinyi Solar i.e., Xinyi Solar and Newhydrogen go up and down completely randomly.
Pair Corralation between Xinyi Solar and Newhydrogen
Assuming the 90 days horizon Xinyi Solar Holdings is expected to under-perform the Newhydrogen. But the pink sheet apears to be less risky and, when comparing its historical volatility, Xinyi Solar Holdings is 3.02 times less risky than Newhydrogen. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Newhydrogen is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.35 in Newhydrogen on November 4, 2024 and sell it today you would earn a total of 0.06 from holding Newhydrogen or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xinyi Solar Holdings vs. Newhydrogen
Performance |
| Timeline |
| Xinyi Solar Holdings |
| Newhydrogen |
Xinyi Solar and Newhydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Solar and Newhydrogen
The main advantage of trading using opposite Xinyi Solar and Newhydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Solar position performs unexpectedly, Newhydrogen 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 Newhydrogen will offset losses from the drop in Newhydrogen's long position.| Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. GCL Poly Energy Holdings | Xinyi Solar vs. Three Sixty Solar |
| Newhydrogen vs. Solar Integrated Roofing | Newhydrogen vs. Ascent Solar Technologies, | Newhydrogen vs. SunHydrogen | Newhydrogen vs. Solar Alliance Energy |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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