Correlation Between Align Technology and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Align Technology 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 Align Technology and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Align Technology and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Align Technology 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 Align Technology with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Align Technology and XTANT MEDICAL.
Diversification Opportunities for Align Technology and XTANT MEDICAL
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Align and XTANT is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Align Technology 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 Align 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 Align Technology 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 Align Technology i.e., Align Technology and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Align Technology and XTANT MEDICAL
Assuming the 90 days horizon Align Technology is expected to under-perform the XTANT MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, Align Technology is 2.63 times less risky than XTANT MEDICAL. The stock trades about -0.06 of its potential returns per unit of risk. The XTANT MEDICAL HLDGS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 40.00 in XTANT MEDICAL HLDGS on October 16, 2024 and sell it today you would earn a total of 4.00 from holding XTANT MEDICAL HLDGS or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Align Technology vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Align Technology |
| XTANT MEDICAL HLDGS |
Align Technology and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Align Technology and XTANT MEDICAL
The main advantage of trading using opposite Align Technology and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Align Technology 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.| Align Technology vs. IMPERIAL TOBACCO | Align Technology vs. Take Two Interactive Software | Align Technology vs. British American Tobacco | Align Technology vs. SCOTT TECHNOLOGY |
| XTANT MEDICAL vs. Liberty Broadband | XTANT MEDICAL vs. Gaztransport Technigaz SA | XTANT MEDICAL vs. TEXAS ROADHOUSE | XTANT MEDICAL vs. Align 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |