Correlation Between Xinyi Glass and Basanite
Can any of the company-specific risk be diversified away by investing in both Xinyi Glass and Basanite 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 Glass and Basanite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinyi Glass Holdings and Basanite, you can compare the effects of market volatilities on Xinyi Glass and Basanite 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 Glass with a short position of Basanite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Glass and Basanite.
Diversification Opportunities for Xinyi Glass and Basanite
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinyi and Basanite is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Glass Holdings and Basanite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basanite and Xinyi Glass 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 Glass Holdings are associated (or correlated) with Basanite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basanite has no effect on the direction of Xinyi Glass i.e., Xinyi Glass and Basanite go up and down completely randomly.
Pair Corralation between Xinyi Glass and Basanite
Assuming the 90 days horizon Xinyi Glass Holdings is expected to under-perform the Basanite. But the pink sheet apears to be less risky and, when comparing its historical volatility, Xinyi Glass Holdings is 12.13 times less risky than Basanite. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Basanite is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6.10 in Basanite on August 30, 2024 and sell it today you would lose (1.10) from holding Basanite or give up 18.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinyi Glass Holdings vs. Basanite
Performance |
| Timeline |
| Xinyi Glass Holdings |
| Basanite |
Xinyi Glass and Basanite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Glass and Basanite
The main advantage of trading using opposite Xinyi Glass and Basanite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Glass position performs unexpectedly, Basanite 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 Basanite will offset losses from the drop in Basanite's long position.| Xinyi Glass vs. Anhui Conch Cement | Xinyi Glass vs. CEMEX SAB de | Xinyi Glass vs. CEMATRIX | Xinyi Glass vs. Anhui Conch Cement |
| Basanite vs. Xinyi Glass Holdings | Basanite vs. CEMATRIX | Basanite vs. Anhui Conch Cement | Basanite vs. CEMEX SAB de |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |