Correlation Between XTANT MEDICAL and CLOVER HEALTH
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL and CLOVER HEALTH 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 CLOVER HEALTH 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 CLOVER HEALTH INV, you can compare the effects of market volatilities on XTANT MEDICAL and CLOVER HEALTH 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 CLOVER HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and CLOVER HEALTH.
Diversification Opportunities for XTANT MEDICAL and CLOVER HEALTH
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XTANT and CLOVER is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and CLOVER HEALTH INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLOVER HEALTH INV 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 CLOVER HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLOVER HEALTH INV has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and CLOVER HEALTH go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and CLOVER HEALTH
Assuming the 90 days horizon XTANT MEDICAL is expected to generate 3.79 times less return on investment than CLOVER HEALTH. But when comparing it to its historical volatility, XTANT MEDICAL HLDGS is 1.04 times less risky than CLOVER HEALTH. It trades about 0.02 of its potential returns per unit of risk. CLOVER HEALTH INV is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 117.00 in CLOVER HEALTH INV on October 30, 2024 and sell it today you would earn a total of 316.00 from holding CLOVER HEALTH INV or generate 270.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. CLOVER HEALTH INV
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| CLOVER HEALTH INV |
XTANT MEDICAL and CLOVER HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and CLOVER HEALTH
The main advantage of trading using opposite XTANT MEDICAL and CLOVER HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, CLOVER HEALTH 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 CLOVER HEALTH will offset losses from the drop in CLOVER HEALTH's long position.| XTANT MEDICAL vs. SOEDER SPORTFISKE AB | XTANT MEDICAL vs. MAGNUM MINING EXP | XTANT MEDICAL vs. GALENA MINING LTD | XTANT MEDICAL vs. Gaztransport Technigaz SA |
| CLOVER HEALTH vs. Axfood AB | CLOVER HEALTH vs. CSSC Offshore Marine | CLOVER HEALTH vs. GURU ORGANIC ENERGY | CLOVER HEALTH vs. TreeHouse Foods |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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