Correlation Between Xinyi Glass and Lafargeholcim
Can any of the company-specific risk be diversified away by investing in both Xinyi Glass and Lafargeholcim 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 Lafargeholcim 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 Lafargeholcim Ltd ADR, you can compare the effects of market volatilities on Xinyi Glass and Lafargeholcim 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 Lafargeholcim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Glass and Lafargeholcim.
Diversification Opportunities for Xinyi Glass and Lafargeholcim
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinyi and Lafargeholcim is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Glass Holdings and Lafargeholcim Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lafargeholcim ADR 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 Lafargeholcim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lafargeholcim ADR has no effect on the direction of Xinyi Glass i.e., Xinyi Glass and Lafargeholcim go up and down completely randomly.
Pair Corralation between Xinyi Glass and Lafargeholcim
Assuming the 90 days horizon Xinyi Glass Holdings is expected to generate 12.16 times more return on investment than Lafargeholcim. However, Xinyi Glass is 12.16 times more volatile than Lafargeholcim Ltd ADR. It trades about 0.09 of its potential returns per unit of risk. Lafargeholcim Ltd ADR is currently generating about 0.1 per unit of risk. If you would invest 47.00 in Xinyi Glass Holdings on November 5, 2024 and sell it today you would earn a total of 46.00 from holding Xinyi Glass Holdings or generate 97.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.44% |
| Values | Daily Returns |
Xinyi Glass Holdings vs. Lafargeholcim Ltd ADR
Performance |
| Timeline |
| Xinyi Glass Holdings |
| Lafargeholcim ADR |
Xinyi Glass and Lafargeholcim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Glass and Lafargeholcim
The main advantage of trading using opposite Xinyi Glass and Lafargeholcim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Glass position performs unexpectedly, Lafargeholcim 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 Lafargeholcim will offset losses from the drop in Lafargeholcim'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 |
| Lafargeholcim vs. Anhui Conch Cement | Lafargeholcim vs. Buzzi Unicem SpA | Lafargeholcim vs. Wienerberger Baustoffindustrie | Lafargeholcim vs. China National Building |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |