Correlation Between XPeng and Clipper Realty

Can any of the company-specific risk be diversified away by investing in both XPeng and Clipper Realty 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 XPeng and Clipper Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between XPeng Inc and Clipper Realty, you can compare the effects of market volatilities on XPeng and Clipper Realty 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 XPeng with a short position of Clipper Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of XPeng and Clipper Realty.

Diversification Opportunities for XPeng and Clipper Realty

-0.35

Correlation Coefficient

XPeng  Clipper Realty

Very good diversification

The 3 months correlation between XPeng and Clipper is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding XPeng Inc and Clipper Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clipper Realty and XPeng 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 XPeng Inc are associated (or correlated) with Clipper Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clipper Realty has no effect on the direction of XPeng i.e., XPeng and Clipper Realty go up and down completely randomly.

Pair Corralation between XPeng and Clipper Realty

Assuming the 90 days horizon XPeng Inc is expected to generate 1.49 times more return on investment than Clipper Realty. However, XPeng is 1.49 times more volatile than Clipper Realty. It trades about 0.0 of its potential returns per unit of risk. Clipper Realty is currently generating about -0.09 per unit of risk. If you would invest  1,020  in XPeng Inc on September 3, 2025 and sell it today you would lose (20.00) from holding XPeng Inc or give up 1.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

XPeng Inc  vs.  Clipper Realty

XPeng Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days XPeng Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, XPeng is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Clipper Realty

Risk-Adjusted Performance

Weakest

Over the last 90 days Clipper Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with XPeng and Clipper Realty

The main advantage of trading using opposite XPeng and Clipper Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XPeng position performs unexpectedly, Clipper Realty 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 Clipper Realty will offset losses from the drop in Clipper Realty's long position.

The idea behind XPeng Inc and Clipper Realty pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.