Correlation Between Noble Plc and Almacenes Xito
Can any of the company-specific risk be diversified away by investing in both Noble Plc and Almacenes Xito 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 Noble Plc and Almacenes Xito into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble plc and Almacenes xito SA, you can compare the effects of market volatilities on Noble Plc and Almacenes Xito 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 Noble Plc with a short position of Almacenes Xito. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Plc and Almacenes Xito.
Diversification Opportunities for Noble Plc and Almacenes Xito
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Noble and Almacenes is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Noble plc and Almacenes xito SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almacenes xito SA and Noble Plc 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 Noble plc are associated (or correlated) with Almacenes Xito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almacenes xito SA has no effect on the direction of Noble Plc i.e., Noble Plc and Almacenes Xito go up and down completely randomly.
Pair Corralation between Noble Plc and Almacenes Xito
Allowing for the 90-day total investment horizon Noble plc is expected to generate 0.91 times more return on investment than Almacenes Xito. However, Noble plc is 1.1 times less risky than Almacenes Xito. It trades about -0.09 of its potential returns per unit of risk. Almacenes xito SA is currently generating about -0.12 per unit of risk. If you would invest 3,296 in Noble plc on November 3, 2024 and sell it today you would lose (95.00) from holding Noble plc or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Noble plc vs. Almacenes xito SA
Performance |
| Timeline |
| Noble plc |
| Almacenes xito SA |
Noble Plc and Almacenes Xito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Plc and Almacenes Xito
The main advantage of trading using opposite Noble Plc and Almacenes Xito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Plc position performs unexpectedly, Almacenes Xito 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 Almacenes Xito will offset losses from the drop in Almacenes Xito's long position.| Noble Plc vs. Seadrill Limited | Noble Plc vs. Borr Drilling | Noble Plc vs. Patterson UTI Energy | Noble Plc vs. Transocean |
| Almacenes Xito vs. Jerash Holdings | Almacenes Xito vs. WT Offshore | Almacenes Xito vs. Sonos Inc | Almacenes Xito vs. Grounded People Apparel |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |