Correlation Between TCL MULTIMEDIA and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both TCL MULTIMEDIA 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 TCL MULTIMEDIA and Xinyi Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TCL MULTIMEDIA TECH and Xinyi Solar Holdings, you can compare the effects of market volatilities on TCL MULTIMEDIA 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 TCL MULTIMEDIA with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of TCL MULTIMEDIA and Xinyi Solar.
Diversification Opportunities for TCL MULTIMEDIA and Xinyi Solar
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between TCL and Xinyi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding TCL MULTIMEDIA TECH 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 TCL MULTIMEDIA 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 TCL MULTIMEDIA TECH 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 TCL MULTIMEDIA i.e., TCL MULTIMEDIA and Xinyi Solar go up and down completely randomly.
Pair Corralation between TCL MULTIMEDIA and Xinyi Solar
Assuming the 90 days trading horizon TCL MULTIMEDIA TECH is expected to under-perform the Xinyi Solar. But the stock apears to be less risky and, when comparing its historical volatility, TCL MULTIMEDIA TECH is 1.51 times less risky than Xinyi Solar. The stock trades about -0.02 of its potential returns per unit of risk. The Xinyi Solar Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Xinyi Solar Holdings on August 29, 2025 and sell it today you would lose (2.00) from holding Xinyi Solar Holdings or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TCL MULTIMEDIA TECH vs. Xinyi Solar Holdings
Performance |
| Timeline |
| TCL MULTIMEDIA TECH |
| Xinyi Solar Holdings |
TCL MULTIMEDIA and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TCL MULTIMEDIA and Xinyi Solar
The main advantage of trading using opposite TCL MULTIMEDIA and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TCL MULTIMEDIA 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.| TCL MULTIMEDIA vs. BC IRON | TCL MULTIMEDIA vs. APPLIED MATERIALS | TCL MULTIMEDIA vs. Rayonier Advanced Materials | TCL MULTIMEDIA vs. IRONVELD PLC LS |
| Xinyi Solar vs. AAC TECHNOLOGHLDGADR | Xinyi Solar vs. GLG LIFE TECH | Xinyi Solar vs. ACCSYS TECHPLC EO | Xinyi Solar vs. GRIFFIN MINING LTD |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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