Correlation Between Xpel and Xos
Can any of the company-specific risk be diversified away by investing in both Xpel and Xos 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 Xpel and Xos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xpel Inc and Xos Inc, you can compare the effects of market volatilities on Xpel and Xos 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 Xpel with a short position of Xos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xpel and Xos.
Diversification Opportunities for Xpel and Xos
Modest diversification
The 3 months correlation between Xpel and Xos is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Xpel Inc and Xos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xos Inc and Xpel 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 Xpel Inc are associated (or correlated) with Xos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xos Inc has no effect on the direction of Xpel i.e., Xpel and Xos go up and down completely randomly.
Pair Corralation between Xpel and Xos
Given the investment horizon of 90 days Xpel Inc is expected to generate 0.87 times more return on investment than Xos. However, Xpel Inc is 1.15 times less risky than Xos. It trades about 0.02 of its potential returns per unit of risk. Xos Inc is currently generating about -0.02 per unit of risk. If you would invest 4,570 in Xpel Inc on August 26, 2024 and sell it today you would earn a total of 3.00 from holding Xpel Inc or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xpel Inc vs. Xos Inc
Performance |
| Timeline |
| Xpel Inc |
| Xos Inc |
Xpel and Xos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xpel and Xos
The main advantage of trading using opposite Xpel and Xos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xpel position performs unexpectedly, Xos 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 Xos will offset losses from the drop in Xos' long position.| Xpel vs. Dorman Products | Xpel vs. Standard Motor Products | Xpel vs. Motorcar Parts of | Xpel vs. Stoneridge |
| Xos vs. Lion Electric Corp | Xos vs. Nikola Corp | Xos vs. Wabash National | Xos vs. Hydrofarm Holdings Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |