Correlation Between SEKISUI CHEMICAL and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both SEKISUI CHEMICAL 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 SEKISUI CHEMICAL and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEKISUI CHEMICAL and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEKISUI CHEMICAL and XTANT MEDICAL.
Diversification Opportunities for SEKISUI CHEMICAL and XTANT MEDICAL
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SEKISUI and XTANT is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL i.e., SEKISUI CHEMICAL and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between SEKISUI CHEMICAL and XTANT MEDICAL
Assuming the 90 days trading horizon SEKISUI CHEMICAL is expected to generate 0.34 times more return on investment than XTANT MEDICAL. However, SEKISUI CHEMICAL is 2.98 times less risky than XTANT MEDICAL. It trades about 0.07 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about -0.01 per unit of risk. If you would invest 1,300 in SEKISUI CHEMICAL on October 13, 2024 and sell it today you would earn a total of 220.00 from holding SEKISUI CHEMICAL or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEKISUI CHEMICAL vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| SEKISUI CHEMICAL |
| XTANT MEDICAL HLDGS |
SEKISUI CHEMICAL and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEKISUI CHEMICAL and XTANT MEDICAL
The main advantage of trading using opposite SEKISUI CHEMICAL and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEKISUI CHEMICAL 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.| SEKISUI CHEMICAL vs. ADRIATIC METALS LS 013355 | SEKISUI CHEMICAL vs. Gol Intelligent Airlines | SEKISUI CHEMICAL vs. FIREWEED METALS P | SEKISUI CHEMICAL vs. Singapore Airlines Limited |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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