Correlation Between Retail Estates and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and Xinyi Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and Xinyi Solar Holdings, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Xinyi Solar.
Diversification Opportunities for Retail Estates and Xinyi Solar
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Retail and Xinyi is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV 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 Retail Estates 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 Retail Estates NV 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 Retail Estates i.e., Retail Estates and Xinyi Solar go up and down completely randomly.
Pair Corralation between Retail Estates and Xinyi Solar
Assuming the 90 days horizon Retail Estates is expected to generate 17.1 times less return on investment than Xinyi Solar. But when comparing it to its historical volatility, Retail Estates NV is 6.07 times less risky than Xinyi Solar. It trades about 0.0 of its potential returns per unit of risk. Xinyi Solar Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Xinyi Solar Holdings on September 1, 2025 and sell it today you would lose (1.00) from holding Xinyi Solar Holdings or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates NV vs. Xinyi Solar Holdings
Performance |
| Timeline |
| Retail Estates NV |
| Xinyi Solar Holdings |
Retail Estates and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Xinyi Solar
The main advantage of trading using opposite Retail Estates and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. Wenzhou Kangning Hospital | Retail Estates vs. Ramsay Health Care | Retail Estates vs. WESANA HEALTH HOLD | Retail Estates vs. Garofalo Health Care |
| Xinyi Solar vs. Tianjin Capital Environmental | Xinyi Solar vs. AIR PRODCHEMICALS | Xinyi Solar vs. KOOL2PLAY SA ZY | Xinyi Solar vs. UNIVMUSIC GRPADR050 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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