Correlation Between Xinyi Glass and PPC
Can any of the company-specific risk be diversified away by investing in both Xinyi Glass and PPC 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 PPC 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 PPC Ltd ADR, you can compare the effects of market volatilities on Xinyi Glass and PPC 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 PPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Glass and PPC.
Diversification Opportunities for Xinyi Glass and PPC
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinyi and PPC is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Glass Holdings and PPC Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPC Ltd 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 PPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPC Ltd ADR has no effect on the direction of Xinyi Glass i.e., Xinyi Glass and PPC go up and down completely randomly.
Pair Corralation between Xinyi Glass and PPC
Assuming the 90 days horizon Xinyi Glass Holdings is expected to generate 6.53 times more return on investment than PPC. However, Xinyi Glass is 6.53 times more volatile than PPC Ltd ADR. It trades about 0.15 of its potential returns per unit of risk. PPC Ltd ADR is currently generating about 0.05 per unit of risk. If you would invest 46.00 in Xinyi Glass Holdings on August 27, 2024 and sell it today you would earn a total of 64.00 from holding Xinyi Glass Holdings or generate 139.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.56% |
| Values | Daily Returns |
Xinyi Glass Holdings vs. PPC Ltd ADR
Performance |
| Timeline |
| Xinyi Glass Holdings |
| PPC Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xinyi Glass and PPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Glass and PPC
The main advantage of trading using opposite Xinyi Glass and PPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Glass position performs unexpectedly, PPC 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 PPC will offset losses from the drop in PPC'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 |
| PPC vs. Wienerberger Baustoffindustrie | PPC vs. China National Building | PPC vs. Anhui Conch Cement | PPC vs. Lafargeholcim Ltd ADR |
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.
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