Correlation Between Beston Global and Xero
Can any of the company-specific risk be diversified away by investing in both Beston Global and Xero 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 Beston Global and Xero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and Xero, you can compare the effects of market volatilities on Beston Global and Xero 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 Beston Global with a short position of Xero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and Xero.
Diversification Opportunities for Beston Global and Xero
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and Xero is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and Xero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xero and Beston Global 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 Beston Global Food are associated (or correlated) with Xero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xero has no effect on the direction of Beston Global i.e., Beston Global and Xero go up and down completely randomly.
Pair Corralation between Beston Global and Xero
If you would invest 15,962 in Xero on October 11, 2024 and sell it today you would earn a total of 1,207 from holding Xero or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Beston Global Food vs. Xero
Performance |
| Timeline |
| Beston Global Food |
| Xero |
Beston Global and Xero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and Xero
The main advantage of trading using opposite Beston Global and Xero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global position performs unexpectedly, Xero 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 Xero will offset losses from the drop in Xero's long position.| Beston Global vs. Aneka Tambang Tbk | Beston Global vs. Commonwealth Bank of | Beston Global vs. Australia and New | Beston Global vs. ANZ Group Holdings |
| Xero vs. Magellan Financial Group | Xero vs. Bell Financial Group | Xero vs. Bluescope Steel | Xero vs. Kkr Credit Income |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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