Correlation Between Host Hotels and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both Host Hotels and Xinyi Solar 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 Host Hotels and Xinyi Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and Xinyi Solar Holdings, you can compare the effects of market volatilities on Host Hotels and Xinyi Solar 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 Host Hotels with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and Xinyi Solar.
Diversification Opportunities for Host Hotels and Xinyi Solar
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Host and Xinyi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and Xinyi Solar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Solar Holdings and Host Hotels 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 Host Hotels Resorts are associated (or correlated) with Xinyi Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Solar Holdings has no effect on the direction of Host Hotels i.e., Host Hotels and Xinyi Solar go up and down completely randomly.
Pair Corralation between Host Hotels and Xinyi Solar
Assuming the 90 days horizon Host Hotels Resorts is expected to generate 0.46 times more return on investment than Xinyi Solar. However, Host Hotels Resorts is 2.18 times less risky than Xinyi Solar. It trades about 0.03 of its potential returns per unit of risk. Xinyi Solar Holdings is currently generating about -0.14 per unit of risk. If you would invest 1,420 in Host Hotels Resorts on August 27, 2025 and sell it today you would earn a total of 10.00 from holding Host Hotels Resorts or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. Xinyi Solar Holdings
Performance |
| Timeline |
| Host Hotels Resorts |
| Xinyi Solar Holdings |
Host Hotels and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and Xinyi Solar
The main advantage of trading using opposite Host Hotels and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, Xinyi Solar 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 Xinyi Solar will offset losses from the drop in Xinyi Solar's long position.| Host Hotels vs. Sunstone Hotel Investors | Host Hotels vs. Xenia Hotels Resorts | Host Hotels vs. Summit Hotel Properties |
| Xinyi Solar vs. Perseus Mining Limited | Xinyi Solar vs. TCL MULTIMEDIA TECH | Xinyi Solar vs. Columbia Sportswear | Xinyi Solar vs. Globex Mining Enterprises |
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 Stocks Directory module to find actively traded stocks across global markets.
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