Sat, Feb 28, 2015, 1:15 PM EST - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Xinyuan Real Estate Co., Ltd. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • stan.ackman stan.ackman Apr 9, 2012 11:03 AM Flag

    Advice From a Long Time Owner of XIN

    As you said, XIN is a micro cap stock, so its price correlation with the market is not very high by using a intraday basis or daily basis. However, XIN's price does correlated highly to China mainland index and the S&P 500 on a monthly basis. If you compare XIN with Vanke on a 5 year frame, you will find their price movements are highly correlated. XIN just significantly underperform compared with Vanke.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I played with some comparison graphs, and you're definitely right.

      By far the closest correlation is between XIN and Vanke, not Xin and (Bidu or Nasdaq or S&P 500). If this chart doesn't come up right, just choose a one year duration and write XIN in the "compare to" box:

      The very strong correlation between XIN and Vanke, right up until the last week or so, should give all short term bulls reason to reconsider. The chart seems to lend pretty solid support to the theory that XIN's recent 40% pop was only due to being mentioned back to back in the WSJ and Motley Fool, rather than any improvement in XIN's business outlook.

      Here's the headache causing problem for short term bulls: if we interpret the jump as being caused by an economic factor, at the same time we would have to explain why that improved economic factor helped XIN, BUT DIDN'T ALSO help Vanke.

      No good explanation for that discrepancy leaps to mind, but I always keep an open mind.

3.06+0.55(+21.91%)Feb 27 4:07 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.