Correlation Between XTANT MEDICAL and Align Technology
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL and Align Technology 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 Align Technology 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 Align Technology, you can compare the effects of market volatilities on XTANT MEDICAL and Align Technology 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 Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and Align Technology.
Diversification Opportunities for XTANT MEDICAL and Align Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between XTANT and Align is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and Align Technology go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and Align Technology
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to generate 1.01 times more return on investment than Align Technology. However, XTANT MEDICAL is 1.01 times more volatile than Align Technology. It trades about -0.13 of its potential returns per unit of risk. Align Technology is currently generating about -0.15 per unit of risk. If you would invest 36.00 in XTANT MEDICAL HLDGS on September 25, 2024 and sell it today you would lose (2.00) from holding XTANT MEDICAL HLDGS or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. Align Technology
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| Align Technology |
XTANT MEDICAL and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and Align Technology
The main advantage of trading using opposite XTANT MEDICAL and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| XTANT MEDICAL vs. Mitsubishi Materials | XTANT MEDICAL vs. PennyMac Mortgage Investment | XTANT MEDICAL vs. Postal Savings Bank | XTANT MEDICAL vs. APPLIED MATERIALS |
| Align Technology vs. Abbott Laboratories | Align Technology vs. Medtronic PLC | Align Technology vs. Stryker | Align Technology vs. Boston Scientific |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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