Correlation Between Xeros Technology and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both Xeros Technology and Roebuck Food 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 Roebuck Food 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 Roebuck Food Group, you can compare the effects of market volatilities on Xeros Technology and Roebuck Food 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 Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xeros Technology and Roebuck Food.
Diversification Opportunities for Xeros Technology and Roebuck Food
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xeros and Roebuck is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xeros Technology Group and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck Food Group 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 Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of Xeros Technology i.e., Xeros Technology and Roebuck Food go up and down completely randomly.
Pair Corralation between Xeros Technology and Roebuck Food
Assuming the 90 days trading horizon Xeros Technology Group is expected to generate 9.04 times more return on investment than Roebuck Food. However, Xeros Technology is 9.04 times more volatile than Roebuck Food Group. It trades about 0.21 of its potential returns per unit of risk. Roebuck Food Group is currently generating about 0.27 per unit of risk. If you would invest 43.00 in Xeros Technology Group on October 15, 2024 and sell it today you would earn a total of 12.00 from holding Xeros Technology Group or generate 27.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xeros Technology Group vs. Roebuck Food Group
Performance |
| Timeline |
| Xeros Technology |
| Roebuck Food Group |
Xeros Technology and Roebuck Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xeros Technology and Roebuck Food
The main advantage of trading using opposite Xeros Technology and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xeros Technology position performs unexpectedly, Roebuck Food 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 Roebuck Food will offset losses from the drop in Roebuck Food's long position.| Xeros Technology vs. Samsung Electronics Co | Xeros Technology vs. Samsung Electronics Co | Xeros Technology vs. Toyota Motor Corp | Xeros Technology vs. Reliance Industries Ltd |
| Roebuck Food vs. Charter Communications Cl | Roebuck Food vs. Zoom Video Communications | Roebuck Food vs. Xeros Technology Group | Roebuck Food vs. Aeorema Communications Plc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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