Correlation Between XTANT MEDICAL and Charter Communications
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL and Charter Communications 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 Charter Communications 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 Charter Communications, you can compare the effects of market volatilities on XTANT MEDICAL and Charter Communications 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 Charter Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and Charter Communications.
Diversification Opportunities for XTANT MEDICAL and Charter Communications
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTANT and Charter is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and Charter Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications 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 Charter Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and Charter Communications go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and Charter Communications
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to generate 2.2 times more return on investment than Charter Communications. However, XTANT MEDICAL is 2.2 times more volatile than Charter Communications. It trades about 0.13 of its potential returns per unit of risk. Charter Communications is currently generating about -0.25 per unit of risk. If you would invest 37.00 in XTANT MEDICAL HLDGS on October 1, 2024 and sell it today you would earn a total of 4.00 from holding XTANT MEDICAL HLDGS or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. Charter Communications
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| Charter Communications |
XTANT MEDICAL and Charter Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and Charter Communications
The main advantage of trading using opposite XTANT MEDICAL and Charter Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, Charter Communications 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 Charter Communications will offset losses from the drop in Charter Communications' long position.| XTANT MEDICAL vs. Abbott Laboratories | XTANT MEDICAL vs. Medtronic PLC | XTANT MEDICAL vs. Siemens Healthineers AG | XTANT MEDICAL vs. Edwards Lifesciences |
| Charter Communications vs. GOODYEAR T RUBBER | Charter Communications vs. Thai Beverage Public | Charter Communications vs. SENECA FOODS A | Charter Communications vs. Vulcan Materials |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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