Correlation Between Xavis and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both Xavis and Intellian Technologies 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 Intellian Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and Intellian Technologies, you can compare the effects of market volatilities on Xavis and Intellian Technologies 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 Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and Intellian Technologies.
Diversification Opportunities for Xavis and Intellian Technologies
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xavis and Intellian is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies 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 Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of Xavis i.e., Xavis and Intellian Technologies go up and down completely randomly.
Pair Corralation between Xavis and Intellian Technologies
Assuming the 90 days trading horizon Xavis Co is expected to generate 2.16 times more return on investment than Intellian Technologies. However, Xavis is 2.16 times more volatile than Intellian Technologies. It trades about 0.15 of its potential returns per unit of risk. Intellian Technologies is currently generating about -0.07 per unit of risk. If you would invest 126,500 in Xavis Co on November 30, 2024 and sell it today you would earn a total of 36,300 from holding Xavis Co or generate 28.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xavis Co vs. Intellian Technologies
Performance |
| Timeline |
| Xavis |
| Intellian Technologies |
Xavis and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and Intellian Technologies
The main advantage of trading using opposite Xavis and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| Xavis vs. Haitai Confectionery Foods | Xavis vs. Korean Reinsurance Co | Xavis vs. Shinhan Inverse Silver | Xavis vs. Digital Imaging Technology |
| Intellian Technologies vs. Korea Shipbuilding Offshore | Intellian Technologies vs. Hanwha Life Insurance | Intellian Technologies vs. Settlebank | Intellian Technologies vs. ChipsMedia |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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