Correlation Between Ximen Mining and D Box
Can any of the company-specific risk be diversified away by investing in both Ximen Mining and D Box 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 Ximen Mining and D Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ximen Mining Corp and D Box Technologies, you can compare the effects of market volatilities on Ximen Mining and D Box 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 Ximen Mining with a short position of D Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ximen Mining and D Box.
Diversification Opportunities for Ximen Mining and D Box
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ximen and DBO is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp and D Box Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on D Box Technologies and Ximen Mining 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 Ximen Mining Corp are associated (or correlated) with D Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of D Box Technologies has no effect on the direction of Ximen Mining i.e., Ximen Mining and D Box go up and down completely randomly.
Pair Corralation between Ximen Mining and D Box
Assuming the 90 days horizon Ximen Mining Corp is expected to under-perform the D Box. But the stock apears to be less risky and, when comparing its historical volatility, Ximen Mining Corp is 1.02 times less risky than D Box. The stock trades about -0.12 of its potential returns per unit of risk. The D Box Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 14.00 in D Box Technologies on October 12, 2024 and sell it today you would earn a total of 1.00 from holding D Box Technologies or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ximen Mining Corp vs. D Box Technologies
Performance |
| Timeline |
| Ximen Mining Corp |
| D Box Technologies |
Ximen Mining and D Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ximen Mining and D Box
The main advantage of trading using opposite Ximen Mining and D Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ximen Mining position performs unexpectedly, D Box 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 D Box will offset losses from the drop in D Box's long position.The idea behind Ximen Mining Corp and D Box Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| D Box vs. Baylin Technologies | D Box vs. Colabor Group | D Box vs. Knight Therapeutics | D Box vs. StageZero Life Sciences |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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