Correlation Between People Infrastructure and X2M Connect
Can any of the company-specific risk be diversified away by investing in both People Infrastructure and X2M Connect 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 People Infrastructure and X2M Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between People Infrastructure and X2M Connect, you can compare the effects of market volatilities on People Infrastructure and X2M Connect 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 People Infrastructure with a short position of X2M Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of People Infrastructure and X2M Connect.
Diversification Opportunities for People Infrastructure and X2M Connect
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between People and X2M is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding People Infrastructure and X2M Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X2M Connect and People Infrastructure 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 People Infrastructure are associated (or correlated) with X2M Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X2M Connect has no effect on the direction of People Infrastructure i.e., People Infrastructure and X2M Connect go up and down completely randomly.
Pair Corralation between People Infrastructure and X2M Connect
Assuming the 90 days trading horizon People Infrastructure is expected to generate 7.04 times more return on investment than X2M Connect. However, People Infrastructure is 7.04 times more volatile than X2M Connect. It trades about 0.0 of its potential returns per unit of risk. X2M Connect is currently generating about -0.22 per unit of risk. If you would invest 83.00 in People Infrastructure on August 27, 2024 and sell it today you would lose (2.00) from holding People Infrastructure or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
People Infrastructure vs. X2M Connect
Performance |
| Timeline |
| People Infrastructure |
| X2M Connect |
People Infrastructure and X2M Connect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with People Infrastructure and X2M Connect
The main advantage of trading using opposite People Infrastructure and X2M Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if People Infrastructure position performs unexpectedly, X2M Connect 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 X2M Connect will offset losses from the drop in X2M Connect's long position.| People Infrastructure vs. Global Health | People Infrastructure vs. Green Technology Metals | People Infrastructure vs. Medical Developments International | People Infrastructure vs. Fisher Paykel Healthcare |
| X2M Connect vs. Australian United Investment | X2M Connect vs. Alternative Investment Trust | X2M Connect vs. Argo Investments | X2M Connect vs. REGAL ASIAN INVESTMENTS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings 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 |