Correlation Between XMReality and Binero Group
Can any of the company-specific risk be diversified away by investing in both XMReality and Binero Group 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 XMReality and Binero Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XMReality AB and Binero Group AB, you can compare the effects of market volatilities on XMReality and Binero Group 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 XMReality with a short position of Binero Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of XMReality and Binero Group.
Diversification Opportunities for XMReality and Binero Group
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XMReality and Binero is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding XMReality AB and Binero Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binero Group AB and XMReality 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 XMReality AB are associated (or correlated) with Binero Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binero Group AB has no effect on the direction of XMReality i.e., XMReality and Binero Group go up and down completely randomly.
Pair Corralation between XMReality and Binero Group
Assuming the 90 days trading horizon XMReality AB is expected to under-perform the Binero Group. In addition to that, XMReality is 1.34 times more volatile than Binero Group AB. It trades about -0.05 of its total potential returns per unit of risk. Binero Group AB is currently generating about 0.02 per unit of volatility. If you would invest 326.00 in Binero Group AB on September 1, 2024 and sell it today you would lose (74.00) from holding Binero Group AB or give up 22.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
XMReality AB vs. Binero Group AB
Performance |
| Timeline |
| XMReality AB |
| Binero Group AB |
XMReality and Binero Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XMReality and Binero Group
The main advantage of trading using opposite XMReality and Binero Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XMReality position performs unexpectedly, Binero Group 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 Binero Group will offset losses from the drop in Binero Group's long position.| XMReality vs. Tangiamo Touch Technology | XMReality vs. Zaplox AB | XMReality vs. Alligator Bioscience AB | XMReality vs. Garo AB |
| Binero Group vs. Generic Sweden publ | Binero Group vs. Divio Technologies AB | Binero Group vs. Diadrom Holding AB | Binero Group vs. FlexQube AB |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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