Correlation Between Xalles Holdings and Castellum
Can any of the company-specific risk be diversified away by investing in both Xalles Holdings and Castellum 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 Xalles Holdings and Castellum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xalles Holdings and Castellum, you can compare the effects of market volatilities on Xalles Holdings and Castellum 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 Xalles Holdings with a short position of Castellum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xalles Holdings and Castellum.
Diversification Opportunities for Xalles Holdings and Castellum
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xalles and Castellum is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Xalles Holdings and Castellum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castellum and Xalles Holdings 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 Xalles Holdings are associated (or correlated) with Castellum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castellum has no effect on the direction of Xalles Holdings i.e., Xalles Holdings and Castellum go up and down completely randomly.
Pair Corralation between Xalles Holdings and Castellum
Given the investment horizon of 90 days Xalles Holdings is expected to under-perform the Castellum. In addition to that, Xalles Holdings is 1.84 times more volatile than Castellum. It trades about -0.04 of its total potential returns per unit of risk. Castellum is currently generating about 0.07 per unit of volatility. If you would invest 17.00 in Castellum on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Castellum or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Xalles Holdings vs. Castellum
Performance |
| Timeline |
| Xalles Holdings |
| Castellum |
Xalles Holdings and Castellum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xalles Holdings and Castellum
The main advantage of trading using opposite Xalles Holdings and Castellum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xalles Holdings position performs unexpectedly, Castellum 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 Castellum will offset losses from the drop in Castellum's long position.| Xalles Holdings vs. Two Hands Corp | Xalles Holdings vs. Visium Technologies | Xalles Holdings vs. Tautachrome | Xalles Holdings vs. V Group |
| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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