Correlation Between Big Time and XMX
Specify exactly 2 symbols:
By analyzing existing cross correlation between Big Time and XMX, you can compare the effects of market volatilities on Big Time and XMX 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 Big Time with a short position of XMX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Time and XMX.
Diversification Opportunities for Big Time and XMX
Very weak diversification
The 3 months correlation between Big and XMX is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Big Time and XMX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XMX and Big Time 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 Big Time are associated (or correlated) with XMX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XMX has no effect on the direction of Big Time i.e., Big Time and XMX go up and down completely randomly.
Pair Corralation between Big Time and XMX
Assuming the 90 days trading horizon Big Time is expected to generate 1.59 times more return on investment than XMX. However, Big Time is 1.59 times more volatile than XMX. It trades about 0.14 of its potential returns per unit of risk. XMX is currently generating about 0.11 per unit of risk. If you would invest 15.00 in Big Time on September 4, 2024 and sell it today you would earn a total of 3.00 from holding Big Time or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Big Time vs. XMX
Performance |
| Timeline |
| Big Time |
| XMX |
Big Time and XMX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Time and XMX
The main advantage of trading using opposite Big Time and XMX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Time position performs unexpectedly, XMX 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 XMX will offset losses from the drop in XMX's long position.The idea behind Big Time and XMX pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |