Correlation Between XMReality and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both XMReality and Clinical Laserthermia 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 Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XMReality AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on XMReality and Clinical Laserthermia 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 Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of XMReality and Clinical Laserthermia.
Diversification Opportunities for XMReality and Clinical Laserthermia
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XMReality and Clinical is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding XMReality AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia 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 Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of XMReality i.e., XMReality and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between XMReality and Clinical Laserthermia
Assuming the 90 days trading horizon XMReality AB is expected to generate 0.72 times more return on investment than Clinical Laserthermia. However, XMReality AB is 1.4 times less risky than Clinical Laserthermia. It trades about -0.01 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.01 per unit of risk. If you would invest 2.20 in XMReality AB on August 29, 2024 and sell it today you would lose (0.10) from holding XMReality AB or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XMReality AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| XMReality AB |
| Clinical Laserthermia |
XMReality and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XMReality and Clinical Laserthermia
The main advantage of trading using opposite XMReality and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XMReality position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| XMReality vs. Lifco AB | XMReality vs. Lagercrantz Group AB | XMReality vs. Addtech AB | XMReality vs. Instalco Intressenter AB |
| Clinical Laserthermia vs. KABE Group AB | Clinical Laserthermia vs. IAR Systems Group | Clinical Laserthermia vs. Mekonomen AB | Clinical Laserthermia vs. eEducation Albert 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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