Correlation Between Piedmont Office and XPeng
Can any of the company-specific risk be diversified away by investing in both Piedmont Office and XPeng 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 Piedmont Office and XPeng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piedmont Office Realty and XPeng Inc, you can compare the effects of market volatilities on Piedmont Office and XPeng 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 Piedmont Office with a short position of XPeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piedmont Office and XPeng.
Diversification Opportunities for Piedmont Office and XPeng
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Piedmont and XPeng is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Piedmont Office Realty and XPeng Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XPeng Inc and Piedmont Office 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 Piedmont Office Realty are associated (or correlated) with XPeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XPeng Inc has no effect on the direction of Piedmont Office i.e., Piedmont Office and XPeng go up and down completely randomly.
Pair Corralation between Piedmont Office and XPeng
Considering the 90-day investment horizon Piedmont Office Realty is expected to generate 0.56 times more return on investment than XPeng. However, Piedmont Office Realty is 1.8 times less risky than XPeng. It trades about 0.03 of its potential returns per unit of risk. XPeng Inc is currently generating about 0.0 per unit of risk. If you would invest 857.00 in Piedmont Office Realty on September 3, 2025 and sell it today you would earn a total of 17.00 from holding Piedmont Office Realty or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piedmont Office Realty vs. XPeng Inc
Performance |
| Timeline |
| Piedmont Office Realty |
| XPeng Inc |
Piedmont Office and XPeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piedmont Office and XPeng
The main advantage of trading using opposite Piedmont Office and XPeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piedmont Office position performs unexpectedly, XPeng 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 XPeng will offset losses from the drop in XPeng's long position.| Piedmont Office vs. International General Insurance | Piedmont Office vs. Life Insurance | Piedmont Office vs. Baristas Coffee | Piedmont Office vs. Universal Insurance Holdings |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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