Correlation Between TEXAS ROADHOUSE and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both TEXAS ROADHOUSE and XTANT MEDICAL 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 TEXAS ROADHOUSE and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEXAS ROADHOUSE and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on TEXAS ROADHOUSE and XTANT MEDICAL 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 TEXAS ROADHOUSE with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEXAS ROADHOUSE and XTANT MEDICAL.
Diversification Opportunities for TEXAS ROADHOUSE and XTANT MEDICAL
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TEXAS and XTANT is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding TEXAS ROADHOUSE and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS and TEXAS ROADHOUSE 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 TEXAS ROADHOUSE are associated (or correlated) with XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of TEXAS ROADHOUSE i.e., TEXAS ROADHOUSE and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between TEXAS ROADHOUSE and XTANT MEDICAL
Assuming the 90 days trading horizon TEXAS ROADHOUSE is expected to under-perform the XTANT MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, TEXAS ROADHOUSE is 3.22 times less risky than XTANT MEDICAL. The stock trades about -0.12 of its potential returns per unit of risk. The XTANT MEDICAL HLDGS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 40.00 in XTANT MEDICAL HLDGS on October 16, 2024 and sell it today you would earn a total of 4.00 from holding XTANT MEDICAL HLDGS or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
TEXAS ROADHOUSE vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| TEXAS ROADHOUSE |
| XTANT MEDICAL HLDGS |
TEXAS ROADHOUSE and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEXAS ROADHOUSE and XTANT MEDICAL
The main advantage of trading using opposite TEXAS ROADHOUSE and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEXAS ROADHOUSE position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| TEXAS ROADHOUSE vs. WESANA HEALTH HOLD | TEXAS ROADHOUSE vs. SIERRA METALS | TEXAS ROADHOUSE vs. ADRIATIC METALS LS 013355 | TEXAS ROADHOUSE vs. Nippon Light Metal |
| XTANT MEDICAL vs. Liberty Broadband | XTANT MEDICAL vs. Gaztransport Technigaz SA | XTANT MEDICAL vs. TEXAS ROADHOUSE | XTANT MEDICAL vs. Align Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| 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 | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |