Correlation Between CLOVER HEALTH and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both CLOVER HEALTH 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 CLOVER HEALTH and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLOVER HEALTH INV and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on CLOVER HEALTH 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 CLOVER HEALTH with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLOVER HEALTH and XTANT MEDICAL.
Diversification Opportunities for CLOVER HEALTH and XTANT MEDICAL
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CLOVER and XTANT is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CLOVER HEALTH INV 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 CLOVER HEALTH 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 CLOVER HEALTH INV 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 CLOVER HEALTH i.e., CLOVER HEALTH and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between CLOVER HEALTH and XTANT MEDICAL
Assuming the 90 days horizon CLOVER HEALTH is expected to generate 1.25 times less return on investment than XTANT MEDICAL. But when comparing it to its historical volatility, CLOVER HEALTH INV is 1.87 times less risky than XTANT MEDICAL. It trades about 0.14 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 40.00 in XTANT MEDICAL HLDGS on November 7, 2024 and sell it today you would earn a total of 10.00 from holding XTANT MEDICAL HLDGS or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CLOVER HEALTH INV vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| CLOVER HEALTH INV |
| XTANT MEDICAL HLDGS |
CLOVER HEALTH and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLOVER HEALTH and XTANT MEDICAL
The main advantage of trading using opposite CLOVER HEALTH and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLOVER HEALTH 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.| CLOVER HEALTH vs. Jacquet Metal Service | CLOVER HEALTH vs. AEON METALS LTD | CLOVER HEALTH vs. DAIDO METAL TD | CLOVER HEALTH vs. International Consolidated Airlines |
| XTANT MEDICAL vs. WT OFFSHORE | XTANT MEDICAL vs. Brockhaus Capital Management | XTANT MEDICAL vs. SIEM OFFSHORE NEW | XTANT MEDICAL vs. Acadia Healthcare |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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