Correlation Between XTANT MEDICAL and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL and TEN SQUARE 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 XTANT MEDICAL and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTANT MEDICAL HLDGS and TEN SQUARE GAMES, you can compare the effects of market volatilities on XTANT MEDICAL and TEN SQUARE 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 XTANT MEDICAL with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and TEN SQUARE.
Diversification Opportunities for XTANT MEDICAL and TEN SQUARE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between XTANT and TEN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES and XTANT MEDICAL 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 XTANT MEDICAL HLDGS are associated (or correlated) with TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and TEN SQUARE go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and TEN SQUARE
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to generate 3.43 times more return on investment than TEN SQUARE. However, XTANT MEDICAL is 3.43 times more volatile than TEN SQUARE GAMES. It trades about 0.06 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about 0.12 per unit of risk. If you would invest 48.00 in XTANT MEDICAL HLDGS on November 6, 2024 and sell it today you would earn a total of 2.00 from holding XTANT MEDICAL HLDGS or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. TEN SQUARE GAMES
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| TEN SQUARE GAMES |
XTANT MEDICAL and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and TEN SQUARE
The main advantage of trading using opposite XTANT MEDICAL and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| XTANT MEDICAL vs. Abbott Laboratories | XTANT MEDICAL vs. Abbott Laboratories | XTANT MEDICAL vs. Medtronic PLC | XTANT MEDICAL vs. Stryker |
| TEN SQUARE vs. Compugroup Medical SE | TEN SQUARE vs. Genertec Universal Medical | TEN SQUARE vs. Merit Medical Systems | TEN SQUARE vs. Take Two Interactive Software |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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