Correlation Between Xilam Animation and Streamwide
Can any of the company-specific risk be diversified away by investing in both Xilam Animation and Streamwide 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 Xilam Animation and Streamwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xilam Animation and Streamwide, you can compare the effects of market volatilities on Xilam Animation and Streamwide 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 Xilam Animation with a short position of Streamwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilam Animation and Streamwide.
Diversification Opportunities for Xilam Animation and Streamwide
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xilam and Streamwide is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xilam Animation and Streamwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamwide and Xilam Animation 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 Xilam Animation are associated (or correlated) with Streamwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamwide has no effect on the direction of Xilam Animation i.e., Xilam Animation and Streamwide go up and down completely randomly.
Pair Corralation between Xilam Animation and Streamwide
Assuming the 90 days trading horizon Xilam Animation is expected to under-perform the Streamwide. In addition to that, Xilam Animation is 8.44 times more volatile than Streamwide. It trades about -0.21 of its total potential returns per unit of risk. Streamwide is currently generating about 0.04 per unit of volatility. If you would invest 3,230 in Streamwide on November 18, 2024 and sell it today you would earn a total of 20.00 from holding Streamwide or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilam Animation vs. Streamwide
Performance |
| Timeline |
| Xilam Animation |
| Streamwide |
Xilam Animation and Streamwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilam Animation and Streamwide
The main advantage of trading using opposite Xilam Animation and Streamwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilam Animation position performs unexpectedly, Streamwide 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 Streamwide will offset losses from the drop in Streamwide's long position.| Xilam Animation vs. BigBen Interactive | Xilam Animation vs. Trigano SA | Xilam Animation vs. Lumibird SA | Xilam Animation vs. Chargeurs SA |
| Streamwide vs. Sidetrade | Streamwide vs. Esker SA | Streamwide vs. Xilam Animation | Streamwide vs. Ekinops SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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