Correlation Between Xos and CNH Industrial
Can any of the company-specific risk be diversified away by investing in both Xos and CNH Industrial 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 Xos and CNH Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xos Inc and CNH Industrial NV, you can compare the effects of market volatilities on Xos and CNH Industrial 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 Xos with a short position of CNH Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xos and CNH Industrial.
Diversification Opportunities for Xos and CNH Industrial
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xos and CNH is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xos Inc and CNH Industrial NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNH Industrial NV and Xos 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 Xos Inc are associated (or correlated) with CNH Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNH Industrial NV has no effect on the direction of Xos i.e., Xos and CNH Industrial go up and down completely randomly.
Pair Corralation between Xos and CNH Industrial
Considering the 90-day investment horizon Xos Inc is expected to under-perform the CNH Industrial. In addition to that, Xos is 2.32 times more volatile than CNH Industrial NV. It trades about -0.03 of its total potential returns per unit of risk. CNH Industrial NV is currently generating about -0.03 per unit of volatility. If you would invest 1,625 in CNH Industrial NV on August 31, 2024 and sell it today you would lose (480.00) from holding CNH Industrial NV or give up 29.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.94% |
| Values | Daily Returns |
Xos Inc vs. CNH Industrial NV
Performance |
| Timeline |
| Xos Inc |
| CNH Industrial NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xos and CNH Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xos and CNH Industrial
The main advantage of trading using opposite Xos and CNH Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xos position performs unexpectedly, CNH Industrial 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 CNH Industrial will offset losses from the drop in CNH Industrial's long position.| Xos vs. Lion Electric Corp | Xos vs. Nikola Corp | Xos vs. Wabash National | Xos vs. Hydrofarm Holdings Group |
| CNH Industrial vs. Deere Company | CNH Industrial vs. Lindsay | CNH Industrial vs. Alamo Group | CNH Industrial vs. Caterpillar |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |