Correlation Between XTANT MEDICAL and Dow Jones
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on XTANT MEDICAL and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and Dow Jones.
Diversification Opportunities for XTANT MEDICAL and Dow Jones
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XTANT and Dow is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and Dow Jones go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and Dow Jones
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to under-perform the Dow Jones. In addition to that, XTANT MEDICAL is 2.77 times more volatile than Dow Jones Industrial. It trades about -0.13 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.29 per unit of volatility. If you would invest 4,473,657 in Dow Jones Industrial on September 25, 2024 and sell it today you would lose (182,962) from holding Dow Jones Industrial or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. Dow Jones Industrial
Performance |
| Timeline |
XTANT MEDICAL and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
XTANT MEDICAL HLDGS
Pair trading matchups for XTANT MEDICAL
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with XTANT MEDICAL and Dow Jones
The main advantage of trading using opposite XTANT MEDICAL and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| XTANT MEDICAL vs. Abbott Laboratories | XTANT MEDICAL vs. Medtronic PLC | XTANT MEDICAL vs. Stryker | XTANT MEDICAL vs. Boston Scientific |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. Lion One Metals | Dow Jones vs. Blue Moon Metals | Dow Jones vs. Xunlei Ltd Adr |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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