Correlation Between 10X Capital and XPAC Acquisition
Can any of the company-specific risk be diversified away by investing in both 10X Capital and XPAC Acquisition 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 10X Capital and XPAC Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Capital Venture and XPAC Acquisition Corp, you can compare the effects of market volatilities on 10X Capital and XPAC Acquisition 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 10X Capital with a short position of XPAC Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Capital and XPAC Acquisition.
Diversification Opportunities for 10X Capital and XPAC Acquisition
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 10X and XPAC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding 10X Capital Venture and XPAC Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XPAC Acquisition Corp and 10X 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 10X Capital Venture are associated (or correlated) with XPAC Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XPAC Acquisition Corp has no effect on the direction of 10X Capital i.e., 10X Capital and XPAC Acquisition go up and down completely randomly.
Pair Corralation between 10X Capital and XPAC Acquisition
Given the investment horizon of 90 days 10X Capital Venture is expected to generate 1.72 times more return on investment than XPAC Acquisition. However, 10X Capital is 1.72 times more volatile than XPAC Acquisition Corp. It trades about 0.19 of its potential returns per unit of risk. XPAC Acquisition Corp is currently generating about 0.26 per unit of risk. If you would invest 1,020 in 10X Capital Venture on September 2, 2024 and sell it today you would earn a total of 10.00 from holding 10X Capital Venture or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X Capital Venture vs. XPAC Acquisition Corp
Performance |
| Timeline |
| 10X Capital Venture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| XPAC Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
10X Capital and XPAC Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X Capital and XPAC Acquisition
The main advantage of trading using opposite 10X Capital and XPAC Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Capital position performs unexpectedly, XPAC Acquisition 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 XPAC Acquisition will offset losses from the drop in XPAC Acquisition's long position.| 10X Capital vs. Welsbach Technology Metals | 10X Capital vs. Broad Capital Acquisition | 10X Capital vs. Finnovate Acquisition Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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