Correlation Between Nutanix and XBP Europe
Can any of the company-specific risk be diversified away by investing in both Nutanix and XBP Europe 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 Nutanix and XBP Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nutanix and XBP Europe Holdings, you can compare the effects of market volatilities on Nutanix and XBP Europe 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 Nutanix with a short position of XBP Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutanix and XBP Europe.
Diversification Opportunities for Nutanix and XBP Europe
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nutanix and XBP is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nutanix and XBP Europe Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XBP Europe Holdings and Nutanix 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 Nutanix are associated (or correlated) with XBP Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XBP Europe Holdings has no effect on the direction of Nutanix i.e., Nutanix and XBP Europe go up and down completely randomly.
Pair Corralation between Nutanix and XBP Europe
Given the investment horizon of 90 days Nutanix is expected to generate 0.27 times more return on investment than XBP Europe. However, Nutanix is 3.68 times less risky than XBP Europe. It trades about 0.06 of its potential returns per unit of risk. XBP Europe Holdings is currently generating about -0.02 per unit of risk. If you would invest 4,703 in Nutanix on September 12, 2024 and sell it today you would earn a total of 1,775 from holding Nutanix or generate 37.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nutanix vs. XBP Europe Holdings
Performance |
| Timeline |
| Nutanix |
| XBP Europe Holdings |
Nutanix and XBP Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nutanix and XBP Europe
The main advantage of trading using opposite Nutanix and XBP Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutanix position performs unexpectedly, XBP Europe 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 XBP Europe will offset losses from the drop in XBP Europe's long position.| Nutanix vs. Palo Alto Networks | Nutanix vs. Uipath Inc | Nutanix vs. Zscaler | Nutanix vs. Crowdstrike Holdings |
| XBP Europe vs. Artisan Partners Asset | XBP Europe vs. Stepstone Group | XBP Europe vs. Willamette Valley Vineyards | XBP Europe vs. Fomento Economico Mexicano |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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