Correlation Between New Tech and X Trade
Can any of the company-specific risk be diversified away by investing in both New Tech and X Trade 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 New Tech and X Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Tech Capital and X Trade Brokers, you can compare the effects of market volatilities on New Tech and X Trade 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 New Tech with a short position of X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Tech and X Trade.
Diversification Opportunities for New Tech and X Trade
Very good diversification
The 3 months correlation between New and XTB is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding New Tech Capital and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers and New Tech 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 New Tech Capital are associated (or correlated) with X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of New Tech i.e., New Tech and X Trade go up and down completely randomly.
Pair Corralation between New Tech and X Trade
Assuming the 90 days trading horizon New Tech is expected to generate 10.63 times less return on investment than X Trade. In addition to that, New Tech is 2.04 times more volatile than X Trade Brokers. It trades about 0.0 of its total potential returns per unit of risk. X Trade Brokers is currently generating about 0.1 per unit of volatility. If you would invest 2,438 in X Trade Brokers on August 23, 2024 and sell it today you would earn a total of 4,562 from holding X Trade Brokers or generate 187.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Tech Capital vs. X Trade Brokers
Performance |
| Timeline |
| New Tech Capital |
| X Trade Brokers |
New Tech and X Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Tech and X Trade
The main advantage of trading using opposite New Tech and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Tech position performs unexpectedly, X Trade 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 Trade will offset losses from the drop in X Trade's long position.| New Tech vs. Igoria Trade SA | New Tech vs. Globe Trade Centre | New Tech vs. Logintrade SA | New Tech vs. PZ Cormay SA |
| X Trade vs. Monnari Trade SA | X Trade vs. CI Games SA | X Trade vs. MW Trade SA | X Trade vs. Live Motion Games |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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