Correlation Between Victory Integrity and X Financial
Can any of the company-specific risk be diversified away by investing in both Victory Integrity and X 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 Victory Integrity and X Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Integrity Smallmid Cap and X Financial Class, you can compare the effects of market volatilities on Victory Integrity and X 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 Victory Integrity with a short position of X Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Integrity and X Financial.
Diversification Opportunities for Victory Integrity and X Financial
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victory and XYF is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Victory Integrity Smallmid Cap and X Financial Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Financial Class and Victory Integrity 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 Victory Integrity Smallmid Cap are associated (or correlated) with X Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Financial Class has no effect on the direction of Victory Integrity i.e., Victory Integrity and X Financial go up and down completely randomly.
Pair Corralation between Victory Integrity and X Financial
Assuming the 90 days horizon Victory Integrity is expected to generate 26.13 times less return on investment than X Financial. But when comparing it to its historical volatility, Victory Integrity Smallmid Cap is 3.04 times less risky than X Financial. It trades about 0.01 of its potential returns per unit of risk. X Financial Class is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 377.00 in X Financial Class on October 22, 2024 and sell it today you would earn a total of 366.00 from holding X Financial Class or generate 97.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.56% |
| Values | Daily Returns |
Victory Integrity Smallmid Cap vs. X Financial Class
Performance |
| Timeline |
| Victory Integrity |
| X Financial Class |
Victory Integrity and X Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Integrity and X Financial
The main advantage of trading using opposite Victory Integrity and X Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Integrity position performs unexpectedly, X 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 X Financial will offset losses from the drop in X Financial's long position.| Victory Integrity vs. Alliancebernstein Bond | Victory Integrity vs. Enhanced Fixed Income | Victory Integrity vs. Georgia Tax Free Bond | Victory Integrity vs. Siit High Yield |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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