Correlation Between Xp and Goldenbridge Acquisition
Can any of the company-specific risk be diversified away by investing in both Xp and Goldenbridge Acquisition 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 Xp and Goldenbridge Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Goldenbridge Acquisition Limited, you can compare the effects of market volatilities on Xp and Goldenbridge Acquisition 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 Xp with a short position of Goldenbridge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Goldenbridge Acquisition.
Diversification Opportunities for Xp and Goldenbridge Acquisition
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xp and Goldenbridge is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc and Goldenbridge Acquisition Limit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldenbridge Acquisition and Xp 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 Xp Inc are associated (or correlated) with Goldenbridge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldenbridge Acquisition has no effect on the direction of Xp i.e., Xp and Goldenbridge Acquisition go up and down completely randomly.
Pair Corralation between Xp and Goldenbridge Acquisition
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Goldenbridge Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Xp Inc is 8.84 times less risky than Goldenbridge Acquisition. The stock trades about -0.04 of its potential returns per unit of risk. The Goldenbridge Acquisition Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Goldenbridge Acquisition Limited on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Goldenbridge Acquisition Limited or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 74.86% |
| Values | Daily Returns |
Xp Inc vs. Goldenbridge Acquisition Limit
Performance |
| Timeline |
| Xp Inc |
| Goldenbridge Acquisition |
Xp and Goldenbridge Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and Goldenbridge Acquisition
The main advantage of trading using opposite Xp and Goldenbridge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp position performs unexpectedly, Goldenbridge Acquisition 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 Goldenbridge Acquisition will offset losses from the drop in Goldenbridge Acquisition's long position.| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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