Correlation Between Xebec Adsorption and Standex International
Can any of the company-specific risk be diversified away by investing in both Xebec Adsorption and Standex International 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 Xebec Adsorption and Standex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xebec Adsorption and Standex International, you can compare the effects of market volatilities on Xebec Adsorption and Standex International 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 Xebec Adsorption with a short position of Standex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xebec Adsorption and Standex International.
Diversification Opportunities for Xebec Adsorption and Standex International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xebec and Standex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xebec Adsorption and Standex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standex International and Xebec Adsorption 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 Xebec Adsorption are associated (or correlated) with Standex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standex International has no effect on the direction of Xebec Adsorption i.e., Xebec Adsorption and Standex International go up and down completely randomly.
Pair Corralation between Xebec Adsorption and Standex International
Assuming the 90 days horizon Xebec Adsorption is expected to generate 42.81 times more return on investment than Standex International. However, Xebec Adsorption is 42.81 times more volatile than Standex International. It trades about 0.07 of its potential returns per unit of risk. Standex International is currently generating about 0.08 per unit of risk. If you would invest 0.00 in Xebec Adsorption on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Xebec Adsorption or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Xebec Adsorption vs. Standex International
Performance |
| Timeline |
| Xebec Adsorption |
| Standex International |
Xebec Adsorption and Standex International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xebec Adsorption and Standex International
The main advantage of trading using opposite Xebec Adsorption and Standex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xebec Adsorption position performs unexpectedly, Standex International 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 Standex International will offset losses from the drop in Standex International's long position.| Xebec Adsorption vs. Standex International | Xebec Adsorption vs. Intevac | Xebec Adsorption vs. Thermon Group Holdings | Xebec Adsorption vs. Enpro Industries |
| Standex International vs. Gorman Rupp | Standex International vs. Franklin Electric Co | Standex International vs. Omega Flex | Standex International vs. China Yuchai International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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