Correlation Between Xeros Technology and Ebro Foods
Can any of the company-specific risk be diversified away by investing in both Xeros Technology and Ebro Foods 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 Xeros Technology and Ebro Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xeros Technology Group and Ebro Foods, you can compare the effects of market volatilities on Xeros Technology and Ebro Foods 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 Xeros Technology with a short position of Ebro Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xeros Technology and Ebro Foods.
Diversification Opportunities for Xeros Technology and Ebro Foods
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xeros and Ebro is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xeros Technology Group and Ebro Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebro Foods and Xeros Technology 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 Xeros Technology Group are associated (or correlated) with Ebro Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebro Foods has no effect on the direction of Xeros Technology i.e., Xeros Technology and Ebro Foods go up and down completely randomly.
Pair Corralation between Xeros Technology and Ebro Foods
Assuming the 90 days trading horizon Xeros Technology Group is expected to generate 12.64 times more return on investment than Ebro Foods. However, Xeros Technology is 12.64 times more volatile than Ebro Foods. It trades about 0.27 of its potential returns per unit of risk. Ebro Foods is currently generating about -0.03 per unit of risk. If you would invest 38.00 in Xeros Technology Group on October 20, 2024 and sell it today you would earn a total of 15.00 from holding Xeros Technology Group or generate 39.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xeros Technology Group vs. Ebro Foods
Performance |
| Timeline |
| Xeros Technology |
| Ebro Foods |
Xeros Technology and Ebro Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xeros Technology and Ebro Foods
The main advantage of trading using opposite Xeros Technology and Ebro Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xeros Technology position performs unexpectedly, Ebro Foods 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 Ebro Foods will offset losses from the drop in Ebro Foods' long position.| Xeros Technology vs. JB Hunt Transport | Xeros Technology vs. Air Products Chemicals | Xeros Technology vs. Impax Asset Management | Xeros Technology vs. Universal Music Group |
| Ebro Foods vs. Xeros Technology Group | Ebro Foods vs. Alfa Financial Software | Ebro Foods vs. Axway Software SA | Ebro Foods vs. Taiwan Semiconductor Manufacturing |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |