Correlation Between SASI Old and Xalles Holdings
Can any of the company-specific risk be diversified away by investing in both SASI Old and Xalles Holdings 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 SASI Old and Xalles Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASI Old and Xalles Holdings, you can compare the effects of market volatilities on SASI Old and Xalles Holdings 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 SASI Old with a short position of Xalles Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASI Old and Xalles Holdings.
Diversification Opportunities for SASI Old and Xalles Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SASI and Xalles is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SASI Old and Xalles Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xalles Holdings and SASI Old 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 SASI Old are associated (or correlated) with Xalles Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xalles Holdings has no effect on the direction of SASI Old i.e., SASI Old and Xalles Holdings go up and down completely randomly.
Pair Corralation between SASI Old and Xalles Holdings
Given the investment horizon of 90 days SASI Old is expected to under-perform the Xalles Holdings. But the stock apears to be less risky and, when comparing its historical volatility, SASI Old is 1.76 times less risky than Xalles Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The Xalles Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.29 in Xalles Holdings on October 20, 2024 and sell it today you would lose (0.24) from holding Xalles Holdings or give up 82.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 24.6% |
| Values | Daily Returns |
SASI Old vs. Xalles Holdings
Performance |
| Timeline |
| SASI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xalles Holdings |
SASI Old and Xalles Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASI Old and Xalles Holdings
The main advantage of trading using opposite SASI Old and Xalles Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASI Old position performs unexpectedly, Xalles Holdings 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 Xalles Holdings will offset losses from the drop in Xalles Holdings' long position.| SASI Old vs. Flint Telecom Group | SASI Old vs. Castellum | SASI Old vs. Datametrex AI Limited | SASI Old vs. TTEC Holdings |
| Xalles Holdings vs. Visium Technologies | Xalles Holdings vs. Tautachrome | Xalles Holdings vs. V Group | Xalles Holdings vs. TPT Global Tech |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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