Correlation Between XSpring Capital and Prime Office
Can any of the company-specific risk be diversified away by investing in both XSpring Capital and Prime Office 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 XSpring Capital and Prime Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XSpring Capital Public and Prime Office Leasehold, you can compare the effects of market volatilities on XSpring Capital and Prime Office 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 XSpring Capital with a short position of Prime Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of XSpring Capital and Prime Office.
Diversification Opportunities for XSpring Capital and Prime Office
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XSpring and Prime is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding XSpring Capital Public and Prime Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Office Leasehold and XSpring Capital 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 XSpring Capital Public are associated (or correlated) with Prime Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Office Leasehold has no effect on the direction of XSpring Capital i.e., XSpring Capital and Prime Office go up and down completely randomly.
Pair Corralation between XSpring Capital and Prime Office
Assuming the 90 days trading horizon XSpring Capital is expected to generate 2.23 times less return on investment than Prime Office. In addition to that, XSpring Capital is 2.55 times more volatile than Prime Office Leasehold. It trades about 0.01 of its total potential returns per unit of risk. Prime Office Leasehold is currently generating about 0.04 per unit of volatility. If you would invest 555.00 in Prime Office Leasehold on September 14, 2024 and sell it today you would earn a total of 75.00 from holding Prime Office Leasehold or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XSpring Capital Public vs. Prime Office Leasehold
Performance |
| Timeline |
| XSpring Capital Public |
| Prime Office Leasehold |
XSpring Capital and Prime Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XSpring Capital and Prime Office
The main advantage of trading using opposite XSpring Capital and Prime Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XSpring Capital position performs unexpectedly, Prime Office 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 Prime Office will offset losses from the drop in Prime Office's long position.| XSpring Capital vs. TMBThanachart Bank Public | XSpring Capital vs. Ngern Tid Lor | XSpring Capital vs. Jay Mart Public | XSpring Capital vs. Taokaenoi Food Marketing |
| Prime Office vs. Quality Houses Property | Prime Office vs. LH Shopping Centers | Prime Office vs. The Erawan Group | Prime Office vs. XSpring Capital Public |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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