Xero Correlations

XROLF Stock

USD 108.40 0.71 0.65%

The current 90-days correlation between Xero Limited and MicroStrategy Incorporated is 0.14 (i.e., Average diversification). The correlation of Xero is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Xero Correlation With Market

Significant diversification

The correlation between Xero Limited and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Xero Limited and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Xero could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Xero when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Xero - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Xero Limited to buy it.

Moving together with Xero Pink Sheet

0.77	CRM	Salesforce Earnings Call Today	Pair Corr
0.75	NOW	ServiceNow Fiscal Year End 22nd of January 2025	Pair Corr
0.89	SHOP	Shopify	Pair Corr
0.83	APP	Applovin Corp	Pair Corr
0.81	MSTR	MicroStrategy Incorporated	Pair Corr
0.68	CDNS	Cadence Design Systems	Pair Corr
0.65	STLD	Steel Dynamics Fiscal Year End 28th of January 2025	Pair Corr
0.64	APLD	Applied Blockchain	Pair Corr
0.81	CRWD	Crowdstrike Holdings	Pair Corr
0.71	ADSK	Autodesk	Pair Corr
0.62	ZM	Zoom Video Communications	Pair Corr
0.76	RCAT	Red Cat Holdings Trending	Pair Corr
0.69	ALAB	Astera Labs, Common	Pair Corr

Moving against Xero Pink Sheet

0.54	NTME	NetMed Inc	Pair Corr
0.46	AMIX	Autonomix Medical, Common Downward Rally	Pair Corr
0.31	VNTN	VentureNet Capital	Pair Corr

Related Correlations Analysis

	CRM	SAP	NOW	INTU	UBER	SHOP	APP	MSTR	CDNS
CRM		0.75	0.94	0.52	0.03	0.9	0.94	0.93	0.78	CRM
SAP	0.75		0.79	0.25	0.34	0.55	0.66	0.68	0.54	SAP
NOW	0.94	0.79		0.61	-0.01	0.87	0.93	0.9	0.81	NOW
INTU	0.52	0.25	0.61		-0.46	0.63	0.65	0.52	0.69	INTU
UBER	0.03	0.34	-0.01	-0.46		-0.12	-0.19	-0.13	-0.23	UBER
SHOP	0.9	0.55	0.87	0.63	-0.12		0.93	0.9	0.77	SHOP
APP	0.94	0.66	0.93	0.65	-0.19	0.93		0.97	0.81	APP
MSTR	0.93	0.68	0.9	0.52	-0.13	0.9	0.97		0.76	MSTR
CDNS	0.78	0.54	0.81	0.69	-0.23	0.77	0.81	0.76		CDNS
	CRM	SAP	NOW	INTU	UBER	SHOP	APP	MSTR	CDNS

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MSTR	+ 0.97	APP
NOW	+ 0.94	CRM
APP	+ 0.94	CRM
MSTR	+ 0.93	CRM
APP	+ 0.93	NOW
APP	+ 0.93	SHOP

High negative correlations

UBER	- 0.46	INTU
CDNS	- 0.23	UBER
APP	- 0.19	UBER
MSTR	- 0.13	UBER
SHOP	- 0.12	UBER
UBER	- 0.01	NOW

Risk-Adjusted Indicators

There is a big difference between Xero Pink Sheet performing well and Xero Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Xero's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CRM	1.28	0.26	0.21	0.35	0.91	(1.51)	3.18	(1.91)	9.09
SAP	1.06	0.04	(0.02)	0.21	1.16	(1.20)	2.16	(1.91)	6.50
NOW	1.35	0.24	0.18	0.34	1.17	(1.67)	3.04	(2.24)	8.12
INTU	1.27	(0.08)	(0.04)	0.04	1.73	(1.36)	3.34	(2.37)	10.46
UBER	1.62	(0.12)	(0.05)	0.00	2.25	(1.79)	2.69	(2.44)	20.10
SHOP	1.99	0.47	0.24	0.51	1.64	(2.39)	4.91	(2.68)	26.26
APP	3.37	2.03	0.89	3.20	0.92	(4.09)	9.39	(3.46)	48.41
MSTR	5.11	1.38	0.33	0.62	3.99	(6.48)	12.96	(6.05)	41.89
CDNS	1.75	0.08	0.05	0.19	2.01	(1.87)	3.47	(4.40)	17.32

Be your own money manager

Our tools can tell you how much better you can do entering a position in Xero without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Xero Corporate Management

Steven BE	Chief Officer	Profile
Rachael Powell	Chief People Officer	Profile
Anna Curzon	Chief Partner Officer	Profile
Nicole Reid	Chief Officer	Profile
BEc FCIS	Company Officer	Profile
Rod Drury	Founder Director	Profile
Mark Rees	Chief Officer	Profile

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