Correlation Between XLMedia PLC and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Schweiter Technologies 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 XLMedia PLC and Schweiter Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Schweiter Technologies AG, you can compare the effects of market volatilities on XLMedia PLC and Schweiter Technologies 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 XLMedia PLC with a short position of Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Schweiter Technologies.
Diversification Opportunities for XLMedia PLC and Schweiter Technologies
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XLMedia and Schweiter is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Schweiter Technologies go up and down completely randomly.
Pair Corralation between XLMedia PLC and Schweiter Technologies
Assuming the 90 days trading horizon XLMedia PLC is expected to generate 3.17 times more return on investment than Schweiter Technologies. However, XLMedia PLC is 3.17 times more volatile than Schweiter Technologies AG. It trades about 0.01 of its potential returns per unit of risk. Schweiter Technologies AG is currently generating about -0.06 per unit of risk. If you would invest 1,600 in XLMedia PLC on September 5, 2024 and sell it today you would lose (415.00) from holding XLMedia PLC or give up 25.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
XLMedia PLC vs. Schweiter Technologies AG
Performance |
| Timeline |
| XLMedia PLC |
| Schweiter Technologies |
XLMedia PLC and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Schweiter Technologies
The main advantage of trading using opposite XLMedia PLC and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| XLMedia PLC vs. New Residential Investment | XLMedia PLC vs. Odyssean Investment Trust | XLMedia PLC vs. EVS Broadcast Equipment | XLMedia PLC vs. The Mercantile Investment |
| Schweiter Technologies vs. Host Hotels Resorts | Schweiter Technologies vs. Adriatic Metals | Schweiter Technologies vs. Power Metal Resources | Schweiter Technologies vs. Golden Metal Resources |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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