Correlation Between Meta Platforms and XLMedia PLC
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By analyzing existing cross correlation between Meta Platforms and XLMedia PLC, you can compare the effects of market volatilities on Meta Platforms and XLMedia PLC 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 Meta Platforms with a short position of XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and XLMedia PLC.
Diversification Opportunities for Meta Platforms and XLMedia PLC
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Meta and XLMedia is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC and Meta Platforms 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 Meta Platforms are associated (or correlated) with XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Meta Platforms i.e., Meta Platforms and XLMedia PLC go up and down completely randomly.
Pair Corralation between Meta Platforms and XLMedia PLC
Assuming the 90 days trading horizon Meta Platforms is expected to generate 0.37 times more return on investment than XLMedia PLC. However, Meta Platforms is 2.7 times less risky than XLMedia PLC. It trades about 0.14 of its potential returns per unit of risk. XLMedia PLC is currently generating about 0.02 per unit of risk. If you would invest 12,164 in Meta Platforms on August 31, 2024 and sell it today you would earn a total of 41,906 from holding Meta Platforms or generate 344.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Meta Platforms vs. XLMedia PLC
Performance |
| Timeline |
| Meta Platforms |
| XLMedia PLC |
Meta Platforms and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Platforms and XLMedia PLC
The main advantage of trading using opposite Meta Platforms and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| Meta Platforms vs. KENEDIX OFFICE INV | Meta Platforms vs. POWER METALS | Meta Platforms vs. Lion Biotechnologies | Meta Platforms vs. LION ONE METALS |
| XLMedia PLC vs. THORNEY TECHS LTD | XLMedia PLC vs. SOFI TECHNOLOGIES | XLMedia PLC vs. POWER METALS | XLMedia PLC vs. NetSol Technologies |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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