Correlation Between Xos Equity and Advent Technologies
Can any of the company-specific risk be diversified away by investing in both Xos Equity and Advent Technologies 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 Equity and Advent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xos Equity Warrants and Advent Technologies Holdings, you can compare the effects of market volatilities on Xos Equity and Advent Technologies 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 Equity with a short position of Advent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xos Equity and Advent Technologies.
Diversification Opportunities for Xos Equity and Advent Technologies
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xos and Advent is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xos Equity Warrants and Advent Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Technologies and Xos Equity 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 Equity Warrants are associated (or correlated) with Advent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Technologies has no effect on the direction of Xos Equity i.e., Xos Equity and Advent Technologies go up and down completely randomly.
Pair Corralation between Xos Equity and Advent Technologies
Assuming the 90 days horizon Xos Equity Warrants is expected to generate 14.33 times more return on investment than Advent Technologies. However, Xos Equity is 14.33 times more volatile than Advent Technologies Holdings. It trades about 0.12 of its potential returns per unit of risk. Advent Technologies Holdings is currently generating about 0.03 per unit of risk. If you would invest 0.00 in Xos Equity Warrants on August 28, 2024 and sell it today you would earn a total of 0.61 from holding Xos Equity Warrants or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.38% |
| Values | Daily Returns |
Xos Equity Warrants vs. Advent Technologies Holdings
Performance |
| Timeline |
| Xos Equity Warrants |
| Advent Technologies |
Xos Equity and Advent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xos Equity and Advent Technologies
The main advantage of trading using opposite Xos Equity and Advent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xos Equity position performs unexpectedly, Advent Technologies 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 Advent Technologies will offset losses from the drop in Advent Technologies' long position.| Xos Equity vs. Microvast Holdings | Xos Equity vs. EVgo Equity Warrants | Xos Equity vs. Faraday Future Intelligent | Xos Equity vs. Xos Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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