Correlation Between Smart Share and XWELL
Can any of the company-specific risk be diversified away by investing in both Smart Share and XWELL 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 Smart Share and XWELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Share Global and XWELL Inc, you can compare the effects of market volatilities on Smart Share and XWELL 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 Smart Share with a short position of XWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and XWELL.
Diversification Opportunities for Smart Share and XWELL
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Smart and XWELL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and XWELL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XWELL Inc and Smart Share 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 Smart Share Global are associated (or correlated) with XWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XWELL Inc has no effect on the direction of Smart Share i.e., Smart Share and XWELL go up and down completely randomly.
Pair Corralation between Smart Share and XWELL
Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 0.96 times more return on investment than XWELL. However, Smart Share Global is 1.04 times less risky than XWELL. It trades about -0.09 of its potential returns per unit of risk. XWELL Inc is currently generating about -0.37 per unit of risk. If you would invest 75.00 in Smart Share Global on August 28, 2024 and sell it today you would lose (4.00) from holding Smart Share Global or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart Share Global vs. XWELL Inc
Performance |
| Timeline |
| Smart Share Global |
| XWELL Inc |
Smart Share and XWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Share and XWELL
The main advantage of trading using opposite Smart Share and XWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share position performs unexpectedly, XWELL 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 XWELL will offset losses from the drop in XWELL's long position.| Smart Share vs. Frontdoor | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash | Smart Share vs. Carriage Services |
| XWELL vs. Mister Car Wash | XWELL vs. Interactive Strength Common | XWELL vs. Goodfood Market Corp | XWELL vs. Frontdoor |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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