Correlation Between Xavis and INTEKPLUS
Can any of the company-specific risk be diversified away by investing in both Xavis and INTEKPLUS 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 INTEKPLUS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and INTEKPLUS Co, you can compare the effects of market volatilities on Xavis and INTEKPLUS 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 INTEKPLUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and INTEKPLUS.
Diversification Opportunities for Xavis and INTEKPLUS
Almost no diversification
The 3 months correlation between Xavis and INTEKPLUS is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and INTEKPLUS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEKPLUS 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 INTEKPLUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEKPLUS has no effect on the direction of Xavis i.e., Xavis and INTEKPLUS go up and down completely randomly.
Pair Corralation between Xavis and INTEKPLUS
Assuming the 90 days trading horizon Xavis Co is expected to generate 1.12 times more return on investment than INTEKPLUS. However, Xavis is 1.12 times more volatile than INTEKPLUS Co. It trades about 0.02 of its potential returns per unit of risk. INTEKPLUS Co is currently generating about 0.0 per unit of risk. If you would invest 157,558 in Xavis Co on September 2, 2024 and sell it today you would lose (15,758) from holding Xavis Co or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xavis Co vs. INTEKPLUS Co
Performance |
| Timeline |
| Xavis |
| INTEKPLUS |
Xavis and INTEKPLUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and INTEKPLUS
The main advantage of trading using opposite Xavis and INTEKPLUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis position performs unexpectedly, INTEKPLUS 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 INTEKPLUS will offset losses from the drop in INTEKPLUS's long position.| Xavis vs. AurosTechnology | Xavis vs. Puloon Technology | Xavis vs. GS Retail Co | Xavis vs. ITM Semiconductor Co |
| INTEKPLUS vs. Dongsin Engineering Construction | INTEKPLUS vs. Doosan Fuel Cell | INTEKPLUS vs. Daishin Balance 1 | INTEKPLUS vs. Total Soft Bank |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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