Correlation Between AEON STORES and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both AEON STORES 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 AEON STORES and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on AEON STORES 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 AEON STORES with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and XTANT MEDICAL.
Diversification Opportunities for AEON STORES and XTANT MEDICAL
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between AEON and XTANT is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES 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 AEON STORES 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 AEON STORES 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 AEON STORES i.e., AEON STORES and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between AEON STORES and XTANT MEDICAL
Assuming the 90 days trading horizon AEON STORES is expected to under-perform the XTANT MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, AEON STORES is 7.67 times less risky than XTANT MEDICAL. The stock trades about -0.1 of its potential returns per unit of risk. The XTANT MEDICAL HLDGS is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 66.00 in XTANT MEDICAL HLDGS on October 13, 2024 and sell it today you would lose (19.00) from holding XTANT MEDICAL HLDGS or give up 28.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| AEON STORES |
| XTANT MEDICAL HLDGS |
AEON STORES and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and XTANT MEDICAL
The main advantage of trading using opposite AEON STORES and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES 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.| AEON STORES vs. AGRICULTBK HADR25 YC | AEON STORES vs. Information Services International Dentsu | AEON STORES vs. Data Modul AG | AEON STORES vs. MICRONIC MYDATA |
| XTANT MEDICAL vs. Costco Wholesale Corp | XTANT MEDICAL vs. The Home Depot | XTANT MEDICAL vs. AEON STORES | XTANT MEDICAL vs. PICKN PAY STORES |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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