Correlation Between Stonex and Xp
Can any of the company-specific risk be diversified away by investing in both Stonex and Xp 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 Stonex and Xp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stonex Group and Xp Inc, you can compare the effects of market volatilities on Stonex and Xp 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 Stonex with a short position of Xp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stonex and Xp.
Diversification Opportunities for Stonex and Xp
Pay attention - limited upside
The 3 months correlation between Stonex and Xp is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Stonex Group and Xp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Inc and Stonex 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 Stonex Group are associated (or correlated) with Xp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Inc has no effect on the direction of Stonex i.e., Stonex and Xp go up and down completely randomly.
Pair Corralation between Stonex and Xp
Given the investment horizon of 90 days Stonex Group is expected to generate 0.54 times more return on investment than Xp. However, Stonex Group is 1.84 times less risky than Xp. It trades about 0.11 of its potential returns per unit of risk. Xp Inc is currently generating about -0.36 per unit of risk. If you would invest 9,581 in Stonex Group on September 15, 2024 and sell it today you would earn a total of 340.00 from holding Stonex Group or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stonex Group vs. Xp Inc
Performance |
| Timeline |
| Stonex Group |
| Xp Inc |
Stonex and Xp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stonex and Xp
The main advantage of trading using opposite Stonex and Xp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stonex position performs unexpectedly, Xp 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 Xp will offset losses from the drop in Xp's long position.| Stonex vs. PJT Partners | Stonex vs. Houlihan Lokey | Stonex vs. Stifel Financial | Stonex vs. Evercore Partners |
| Xp vs. Scully Royalty | Xp vs. Oppenheimer Holdings | Xp vs. Houlihan Lokey | Xp vs. Mercurity Fintech Holding |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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