Correlation Between Haitong Securities and Xp
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and Xp 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 Haitong Securities and Xp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitong Securities Co and Xp Inc, you can compare the effects of market volatilities on Haitong Securities and Xp 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 Haitong Securities with a short position of Xp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and Xp.
Diversification Opportunities for Haitong Securities and Xp
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haitong and Xp is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and Xp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Inc and Haitong Securities 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 Haitong Securities Co are associated (or correlated) with Xp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Inc has no effect on the direction of Haitong Securities i.e., Haitong Securities and Xp go up and down completely randomly.
Pair Corralation between Haitong Securities and Xp
Assuming the 90 days horizon Haitong Securities Co is expected to generate 4.56 times more return on investment than Xp. However, Haitong Securities is 4.56 times more volatile than Xp Inc. It trades about 0.06 of its potential returns per unit of risk. Xp Inc is currently generating about -0.06 per unit of risk. If you would invest 513.00 in Haitong Securities Co on September 4, 2024 and sell it today you would earn a total of 426.00 from holding Haitong Securities Co or generate 83.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.4% |
| Values | Daily Returns |
Haitong Securities Co vs. Xp Inc
Performance |
| Timeline |
| Haitong Securities |
| Xp Inc |
Haitong Securities and Xp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and Xp
The main advantage of trading using opposite Haitong Securities and Xp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, Xp 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 Xp will offset losses from the drop in Xp's long position.| Haitong Securities vs. First Tractor | Haitong Securities vs. Ag Growth International | Haitong Securities vs. AmeraMex International | Haitong Securities vs. Arts Way Manufacturing Co |
| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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