Correlation Between DHI and XIAO I
Can any of the company-specific risk be diversified away by investing in both DHI and XIAO I 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 DHI and XIAO I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DHI Group and XIAO I American, you can compare the effects of market volatilities on DHI and XIAO I 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 DHI with a short position of XIAO I. Check out your portfolio center. Please also check ongoing floating volatility patterns of DHI and XIAO I.
Diversification Opportunities for DHI and XIAO I
Modest diversification
The 3 months correlation between DHI and XIAO is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding DHI Group and XIAO I American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XIAO I American and DHI 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 DHI Group are associated (or correlated) with XIAO I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XIAO I American has no effect on the direction of DHI i.e., DHI and XIAO I go up and down completely randomly.
Pair Corralation between DHI and XIAO I
Considering the 90-day investment horizon DHI Group is expected to under-perform the XIAO I. But the stock apears to be less risky and, when comparing its historical volatility, DHI Group is 2.16 times less risky than XIAO I. The stock trades about -0.05 of its potential returns per unit of risk. The XIAO I American is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,143 in XIAO I American on September 3, 2024 and sell it today you would lose (527.00) from holding XIAO I American or give up 46.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DHI Group vs. XIAO I American
Performance |
| Timeline |
| DHI Group |
| XIAO I American |
DHI and XIAO I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DHI and XIAO I
The main advantage of trading using opposite DHI and XIAO I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DHI position performs unexpectedly, XIAO I 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 XIAO I will offset losses from the drop in XIAO I's long position.The idea behind DHI Group and XIAO I American 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.| XIAO I vs. NetSol Technologies | XIAO I vs. Universal Display | XIAO I vs. Xponential Fitness | XIAO I vs. DHI Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |