Correlation Between Finance Of and XS Financial
Can any of the company-specific risk be diversified away by investing in both Finance Of and XS Financial 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 Finance Of and XS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finance of America and XS Financial, you can compare the effects of market volatilities on Finance Of and XS Financial 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 Finance Of with a short position of XS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finance Of and XS Financial.
Diversification Opportunities for Finance Of and XS Financial
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Finance and XSHLF is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Finance of America and XS Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XS Financial and Finance Of 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 Finance of America are associated (or correlated) with XS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XS Financial has no effect on the direction of Finance Of i.e., Finance Of and XS Financial go up and down completely randomly.
Pair Corralation between Finance Of and XS Financial
If you would invest 1,162 in Finance of America on August 30, 2024 and sell it today you would earn a total of 690.00 from holding Finance of America or generate 59.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Finance of America vs. XS Financial
Performance |
| Timeline |
| Finance of America |
| XS Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Finance Of and XS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finance Of and XS Financial
The main advantage of trading using opposite Finance Of and XS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finance Of position performs unexpectedly, XS Financial 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 XS Financial will offset losses from the drop in XS Financial's long position.| Finance Of vs. Regional Management Corp | Finance Of vs. Orix Corp Ads | Finance Of vs. FirstCash | Finance Of vs. EZCORP Inc |
| XS Financial vs. Zip Co Limited | XS Financial vs. KYN Capital Group | XS Financial vs. CYIOS | XS Financial vs. Cosmos Group Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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