Correlation Between Now and XEROX
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By analyzing existing cross correlation between Now Inc and XEROX HLDGS P, you can compare the effects of market volatilities on Now and XEROX 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 Now with a short position of XEROX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Now and XEROX.
Diversification Opportunities for Now and XEROX
Significant diversification
The 3 months correlation between Now and XEROX is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Now Inc and XEROX HLDGS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XEROX HLDGS P and Now 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 Now Inc are associated (or correlated) with XEROX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XEROX HLDGS P has no effect on the direction of Now i.e., Now and XEROX go up and down completely randomly.
Pair Corralation between Now and XEROX
Given the investment horizon of 90 days Now Inc is expected to generate 4.11 times more return on investment than XEROX. However, Now is 4.11 times more volatile than XEROX HLDGS P. It trades about 0.35 of its potential returns per unit of risk. XEROX HLDGS P is currently generating about 0.02 per unit of risk. If you would invest 1,301 in Now Inc on November 1, 2024 and sell it today you would earn a total of 225.00 from holding Now Inc or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Now Inc vs. XEROX HLDGS P
Performance |
| Timeline |
| Now Inc |
| XEROX HLDGS P |
Now and XEROX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Now and XEROX
The main advantage of trading using opposite Now and XEROX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Now position performs unexpectedly, XEROX 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 XEROX will offset losses from the drop in XEROX's long position.| Now vs. Oil States International | Now vs. Oceaneering International | Now vs. Geospace Technologies | Now vs. Enerflex |
| XEROX vs. Transcontinental Realty Investors | XEROX vs. WK Kellogg Co | XEROX vs. NH Foods Ltd | XEROX vs. PennantPark Floating Rate |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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