Correlation Between Actron Technology and Xxentria Technology
Can any of the company-specific risk be diversified away by investing in both Actron Technology and Xxentria Technology 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 Actron Technology and Xxentria Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actron Technology and Xxentria Technology Materials, you can compare the effects of market volatilities on Actron Technology and Xxentria Technology 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 Actron Technology with a short position of Xxentria Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actron Technology and Xxentria Technology.
Diversification Opportunities for Actron Technology and Xxentria Technology
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Actron and Xxentria is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Actron Technology and Xxentria Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xxentria Technology and Actron Technology 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 Actron Technology are associated (or correlated) with Xxentria Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xxentria Technology has no effect on the direction of Actron Technology i.e., Actron Technology and Xxentria Technology go up and down completely randomly.
Pair Corralation between Actron Technology and Xxentria Technology
Assuming the 90 days trading horizon Actron Technology is expected to generate 1.72 times less return on investment than Xxentria Technology. In addition to that, Actron Technology is 1.25 times more volatile than Xxentria Technology Materials. It trades about 0.09 of its total potential returns per unit of risk. Xxentria Technology Materials is currently generating about 0.19 per unit of volatility. If you would invest 5,340 in Xxentria Technology Materials on October 26, 2024 and sell it today you would earn a total of 290.00 from holding Xxentria Technology Materials or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actron Technology vs. Xxentria Technology Materials
Performance |
| Timeline |
| Actron Technology |
| Xxentria Technology |
Actron Technology and Xxentria Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actron Technology and Xxentria Technology
The main advantage of trading using opposite Actron Technology and Xxentria Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actron Technology position performs unexpectedly, Xxentria Technology 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 Xxentria Technology will offset losses from the drop in Xxentria Technology's long position.| Actron Technology vs. Cayenne Entertainment Technology | Actron Technology vs. U Tech Media Corp | Actron Technology vs. AVerMedia Technologies | Actron Technology vs. Sunspring Metal Corp |
| Xxentria Technology vs. Hota Industrial Mfg | Xxentria Technology vs. Poya International Co | Xxentria Technology vs. Macauto Industrial Co | Xxentria Technology vs. Actron Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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