Correlation Between Xos and SAG Holdings
Can any of the company-specific risk be diversified away by investing in both Xos and SAG Holdings 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 SAG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xos Inc and SAG Holdings Limited, you can compare the effects of market volatilities on Xos and SAG Holdings 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 SAG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xos and SAG Holdings.
Diversification Opportunities for Xos and SAG Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xos and SAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xos Inc and SAG Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAG Holdings Limited 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 SAG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAG Holdings Limited has no effect on the direction of Xos i.e., Xos and SAG Holdings go up and down completely randomly.
Pair Corralation between Xos and SAG Holdings
Considering the 90-day investment horizon Xos Inc is expected to generate 0.45 times more return on investment than SAG Holdings. However, Xos Inc is 2.21 times less risky than SAG Holdings. It trades about -0.11 of its potential returns per unit of risk. SAG Holdings Limited is currently generating about -0.45 per unit of risk. If you would invest 536.00 in Xos Inc on August 23, 2024 and sell it today you would lose (130.00) from holding Xos Inc or give up 24.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 34.38% |
| Values | Daily Returns |
Xos Inc vs. SAG Holdings Limited
Performance |
| Timeline |
| Xos Inc |
| SAG Holdings Limited |
Xos and SAG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xos and SAG Holdings
The main advantage of trading using opposite Xos and SAG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xos position performs unexpectedly, SAG Holdings 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 SAG Holdings will offset losses from the drop in SAG Holdings' long position.| Xos vs. Lion Electric Corp | Xos vs. Nikola Corp | Xos vs. Wabash National | Xos vs. Hydrofarm Holdings Group |
| SAG Holdings vs. FTAI Infrastructure | SAG Holdings vs. Synnex | SAG Holdings vs. Universal Security Instruments | SAG Holdings vs. WESCO International |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |