Correlation Between Xavis and Seronics
Can any of the company-specific risk be diversified away by investing in both Xavis and Seronics 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 Xavis and Seronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and Seronics Co, you can compare the effects of market volatilities on Xavis and Seronics 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 Xavis with a short position of Seronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and Seronics.
Diversification Opportunities for Xavis and Seronics
Good diversification
The 3 months correlation between Xavis and Seronics is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and Seronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seronics and Xavis 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 Xavis Co are associated (or correlated) with Seronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seronics has no effect on the direction of Xavis i.e., Xavis and Seronics go up and down completely randomly.
Pair Corralation between Xavis and Seronics
Assuming the 90 days trading horizon Xavis Co is expected to generate 3.82 times more return on investment than Seronics. However, Xavis is 3.82 times more volatile than Seronics Co. It trades about 0.12 of its potential returns per unit of risk. Seronics Co is currently generating about -0.12 per unit of risk. If you would invest 143,000 in Xavis Co on December 1, 2024 and sell it today you would earn a total of 19,800 from holding Xavis Co or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xavis Co vs. Seronics Co
Performance |
| Timeline |
| Xavis |
| Seronics |
Xavis and Seronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and Seronics
The main advantage of trading using opposite Xavis and Seronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis position performs unexpectedly, Seronics 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 Seronics will offset losses from the drop in Seronics' long position.| Xavis vs. Haitai Confectionery Foods | Xavis vs. Korean Reinsurance Co | Xavis vs. Shinhan Inverse Silver | Xavis vs. Digital Imaging Technology |
| Seronics vs. Korea Industrial Co | Seronics vs. Jinro Distillers Co | Seronics vs. DoubleU Games Co | Seronics vs. Mgame Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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