Correlation Between Xavis and Worldex Industry
Can any of the company-specific risk be diversified away by investing in both Xavis and Worldex Industry 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 Worldex Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and Worldex Industry Trading, you can compare the effects of market volatilities on Xavis and Worldex Industry 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 Worldex Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and Worldex Industry.
Diversification Opportunities for Xavis and Worldex Industry
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xavis and Worldex is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and Worldex Industry Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldex Industry Trading 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 Worldex Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldex Industry Trading has no effect on the direction of Xavis i.e., Xavis and Worldex Industry go up and down completely randomly.
Pair Corralation between Xavis and Worldex Industry
Assuming the 90 days trading horizon Xavis Co is expected to generate 0.64 times more return on investment than Worldex Industry. However, Xavis Co is 1.57 times less risky than Worldex Industry. It trades about 0.17 of its potential returns per unit of risk. Worldex Industry Trading is currently generating about 0.1 per unit of risk. If you would invest 126,500 in Xavis Co on October 30, 2024 and sell it today you would earn a total of 5,900 from holding Xavis Co or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xavis Co vs. Worldex Industry Trading
Performance |
| Timeline |
| Xavis |
| Worldex Industry Trading |
Xavis and Worldex Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and Worldex Industry
The main advantage of trading using opposite Xavis and Worldex Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis position performs unexpectedly, Worldex Industry 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 Worldex Industry will offset losses from the drop in Worldex Industry's long position.| Xavis vs. Kukdong Oil Chemicals | Xavis vs. Namhae Chemical | Xavis vs. Samji Electronics Co | Xavis vs. Daewoo Electronic Components |
| Worldex Industry vs. Samsung Electronics Co | Worldex Industry vs. Samsung Electronics Co | Worldex Industry vs. SK Hynix | Worldex Industry vs. HMM Co |
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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