Correlation Between Sixt SE and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Sixt SE 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 Sixt SE and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Sixt SE 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 Sixt SE with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and XTANT MEDICAL.
Diversification Opportunities for Sixt SE and XTANT MEDICAL
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sixt and XTANT is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE 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 Sixt SE 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 Sixt SE 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 Sixt SE i.e., Sixt SE and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Sixt SE and XTANT MEDICAL
Assuming the 90 days trading horizon Sixt SE is expected to generate 8.25 times less return on investment than XTANT MEDICAL. But when comparing it to its historical volatility, Sixt SE is 4.47 times less risky than XTANT MEDICAL. It trades about 0.14 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 36.00 in XTANT MEDICAL HLDGS on October 13, 2024 and sell it today you would earn a total of 11.00 from holding XTANT MEDICAL HLDGS or generate 30.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Sixt SE |
| XTANT MEDICAL HLDGS |
Sixt SE and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and XTANT MEDICAL
The main advantage of trading using opposite Sixt SE and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE 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.| Sixt SE vs. FLOW TRADERS LTD | Sixt SE vs. Auto Trader Group | Sixt SE vs. Elmos Semiconductor SE | Sixt SE vs. FAST RETAIL ADR |
| XTANT MEDICAL vs. Costco Wholesale Corp | XTANT MEDICAL vs. The Home Depot | XTANT MEDICAL vs. AEON STORES | XTANT MEDICAL vs. PICKN PAY STORES |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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