Correlation Between Postal Savings and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Postal Savings and XTANT MEDICAL 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 Postal Savings and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Postal Savings and XTANT MEDICAL 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 Postal Savings with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and XTANT MEDICAL.
Diversification Opportunities for Postal Savings and XTANT MEDICAL
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Postal and XTANT is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS and Postal Savings 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 Postal Savings Bank are associated (or correlated) with XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of Postal Savings i.e., Postal Savings and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Postal Savings and XTANT MEDICAL
Assuming the 90 days horizon Postal Savings Bank is expected to generate 0.95 times more return on investment than XTANT MEDICAL. However, Postal Savings Bank is 1.05 times less risky than XTANT MEDICAL. It trades about 0.12 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about -0.03 per unit of risk. If you would invest 40.00 in Postal Savings Bank on October 14, 2024 and sell it today you would earn a total of 15.00 from holding Postal Savings Bank or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Postal Savings Bank |
| XTANT MEDICAL HLDGS |
Postal Savings and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and XTANT MEDICAL
The main advantage of trading using opposite Postal Savings and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| Postal Savings vs. PLAYMATES TOYS | Postal Savings vs. GAMESTOP | Postal Savings vs. GigaMedia | Postal Savings vs. Media and Games |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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