Correlation Between Sonida Senior and XL Fleet
Can any of the company-specific risk be diversified away by investing in both Sonida Senior and XL Fleet 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 Sonida Senior and XL Fleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and XL Fleet Corp, you can compare the effects of market volatilities on Sonida Senior and XL Fleet 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 Sonida Senior with a short position of XL Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and XL Fleet.
Diversification Opportunities for Sonida Senior and XL Fleet
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sonida and XL Fleet is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and XL Fleet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Fleet Corp and Sonida Senior 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 Sonida Senior Living are associated (or correlated) with XL Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Fleet Corp has no effect on the direction of Sonida Senior i.e., Sonida Senior and XL Fleet go up and down completely randomly.
Pair Corralation between Sonida Senior and XL Fleet
If you would invest 2,524 in Sonida Senior Living on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Sonida Senior Living or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sonida Senior Living vs. XL Fleet Corp
Performance |
| Timeline |
| Sonida Senior Living |
| XL Fleet Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sonida Senior and XL Fleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and XL Fleet
The main advantage of trading using opposite Sonida Senior and XL Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, XL Fleet 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 XL Fleet will offset losses from the drop in XL Fleet's long position.| Sonida Senior vs. Baxter International | Sonida Senior vs. West Pharmaceutical Services | Sonida Senior vs. ResMed Inc | Sonida Senior vs. The Cooper Companies, |
| XL Fleet vs. Supercom | XL Fleet vs. Hurco Companies | XL Fleet vs. Vishay Intertechnology | XL Fleet vs. Ultra Clean Holdings |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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