Correlation Between Almacenes Xito and 111
Can any of the company-specific risk be diversified away by investing in both Almacenes Xito and 111 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 Almacenes Xito and 111 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almacenes xito SA and 111 Inc, you can compare the effects of market volatilities on Almacenes Xito and 111 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 Almacenes Xito with a short position of 111. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almacenes Xito and 111.
Diversification Opportunities for Almacenes Xito and 111
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Almacenes and 111 is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Almacenes xito SA and 111 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 111 Inc and Almacenes Xito 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 Almacenes xito SA are associated (or correlated) with 111. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 111 Inc has no effect on the direction of Almacenes Xito i.e., Almacenes Xito and 111 go up and down completely randomly.
Pair Corralation between Almacenes Xito and 111
Given the investment horizon of 90 days Almacenes xito SA is expected to generate 0.56 times more return on investment than 111. However, Almacenes xito SA is 1.8 times less risky than 111. It trades about -0.27 of its potential returns per unit of risk. 111 Inc is currently generating about -0.3 per unit of risk. If you would invest 423.00 in Almacenes xito SA on August 28, 2024 and sell it today you would lose (45.00) from holding Almacenes xito SA or give up 10.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Almacenes xito SA vs. 111 Inc
Performance |
| Timeline |
| Almacenes xito SA |
| 111 Inc |
Almacenes Xito and 111 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almacenes Xito and 111
The main advantage of trading using opposite Almacenes Xito and 111 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almacenes Xito position performs unexpectedly, 111 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 111 will offset losses from the drop in 111's long position.| Almacenes Xito vs. MOGU Inc | Almacenes Xito vs. iPower Inc | Almacenes Xito vs. Jeffs Brands | Almacenes Xito vs. Kidpik Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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