Correlation Between Xinyi Glass and United States
Can any of the company-specific risk be diversified away by investing in both Xinyi Glass and United States 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 United States 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 United States Lime, you can compare the effects of market volatilities on Xinyi Glass and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinyi Glass and United States.
Diversification Opportunities for Xinyi Glass and United States
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinyi and United is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Xinyi Glass Holdings and United States Lime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Lime 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Lime has no effect on the direction of Xinyi Glass i.e., Xinyi Glass and United States go up and down completely randomly.
Pair Corralation between Xinyi Glass and United States
Assuming the 90 days horizon Xinyi Glass Holdings is expected to generate 0.11 times more return on investment than United States. However, Xinyi Glass Holdings is 9.23 times less risky than United States. It trades about -0.21 of its potential returns per unit of risk. United States Lime is currently generating about -0.33 per unit of risk. If you would invest 93.00 in Xinyi Glass Holdings on November 28, 2024 and sell it today you would lose (1.00) from holding Xinyi Glass Holdings or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinyi Glass Holdings vs. United States Lime
Performance |
| Timeline |
| Xinyi Glass Holdings |
| United States Lime |
Xinyi Glass and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinyi Glass and United States
The main advantage of trading using opposite Xinyi Glass and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinyi Glass position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Xinyi Glass vs. Anhui Conch Cement | Xinyi Glass vs. CEMEX SAB de | Xinyi Glass vs. CEMATRIX | Xinyi Glass vs. Anhui Conch Cement |
| United States vs. Smith Midland Corp | United States vs. Holcim | United States vs. Lafargeholcim Ltd ADR | United States vs. Cementos Pacasmayo SAA |
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.
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