Correlation Between Xavis and Genolution
Can any of the company-specific risk be diversified away by investing in both Xavis and Genolution 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 Genolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and Genolution, you can compare the effects of market volatilities on Xavis and Genolution 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 Genolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and Genolution.
Diversification Opportunities for Xavis and Genolution
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xavis and Genolution is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and Genolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genolution 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 Genolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genolution has no effect on the direction of Xavis i.e., Xavis and Genolution go up and down completely randomly.
Pair Corralation between Xavis and Genolution
Assuming the 90 days trading horizon Xavis Co is expected to under-perform the Genolution. In addition to that, Xavis is 1.07 times more volatile than Genolution. It trades about -0.43 of its total potential returns per unit of risk. Genolution is currently generating about -0.44 per unit of volatility. If you would invest 286,000 in Genolution on September 2, 2024 and sell it today you would lose (62,000) from holding Genolution or give up 21.68% 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. Genolution
Performance |
| Timeline |
| Xavis |
| Genolution |
Xavis and Genolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and Genolution
The main advantage of trading using opposite Xavis and Genolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis position performs unexpectedly, Genolution 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 Genolution will offset losses from the drop in Genolution's long position.| Xavis vs. AurosTechnology | Xavis vs. Puloon Technology | Xavis vs. GS Retail Co | Xavis vs. ITM Semiconductor 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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