Correlation Between Xenia Hotels and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and FPX Nickel 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 Xenia Hotels and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenia Hotels Resorts and FPX Nickel Corp, you can compare the effects of market volatilities on Xenia Hotels and FPX Nickel 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 Xenia Hotels with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and FPX Nickel.
Diversification Opportunities for Xenia Hotels and FPX Nickel
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xenia and FPX is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and Xenia Hotels 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 Xenia Hotels Resorts are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and FPX Nickel go up and down completely randomly.
Pair Corralation between Xenia Hotels and FPX Nickel
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 0.38 times more return on investment than FPX Nickel. However, Xenia Hotels Resorts is 2.65 times less risky than FPX Nickel. It trades about 0.02 of its potential returns per unit of risk. FPX Nickel Corp is currently generating about 0.0 per unit of risk. If you would invest 1,351 in Xenia Hotels Resorts on September 2, 2024 and sell it today you would earn a total of 79.00 from holding Xenia Hotels Resorts or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. FPX Nickel Corp
Performance |
| Timeline |
| Xenia Hotels Resorts |
| FPX Nickel Corp |
Xenia Hotels and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and FPX Nickel
The main advantage of trading using opposite Xenia Hotels and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, FPX Nickel 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.| Xenia Hotels vs. ATRYS HEALTH SA | Xenia Hotels vs. FEMALE HEALTH | Xenia Hotels vs. IMPERIAL TOBACCO | Xenia Hotels vs. PLAYWAY SA ZY 10 |
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 CEOs Directory module to screen CEOs from public companies around the world.
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