Correlation Between Victory Capital and Xp
Can any of the company-specific risk be diversified away by investing in both Victory Capital 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 Victory Capital and Xp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Capital Holdings and Xp Inc, you can compare the effects of market volatilities on Victory Capital 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 Victory Capital with a short position of Xp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and Xp.
Diversification Opportunities for Victory Capital and Xp
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victory and Xp is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings and Xp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Inc and Victory Capital 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 Victory Capital Holdings 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 Victory Capital i.e., Victory Capital and Xp go up and down completely randomly.
Pair Corralation between Victory Capital and Xp
Given the investment horizon of 90 days Victory Capital Holdings is expected to generate 0.84 times more return on investment than Xp. However, Victory Capital Holdings is 1.19 times less risky than Xp. It trades about 0.19 of its potential returns per unit of risk. Xp Inc is currently generating about -0.09 per unit of risk. If you would invest 3,352 in Victory Capital Holdings on August 29, 2024 and sell it today you would earn a total of 3,828 from holding Victory Capital Holdings or generate 114.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Capital Holdings vs. Xp Inc
Performance |
| Timeline |
| Victory Capital Holdings |
| Xp Inc |
Victory Capital and Xp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and Xp
The main advantage of trading using opposite Victory Capital and Xp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital 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.| Victory Capital vs. Carlyle Group | Victory Capital vs. TPG Inc | Victory Capital vs. Carlyle Secured Lending | Victory Capital vs. Brookfield Corp |
| Xp vs. Raymond James Financial | Xp vs. Evercore Partners | Xp vs. Selective Insurance Group | Xp vs. Reinsurance Group of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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