Correlation Between XS Financial and New Amer
Can any of the company-specific risk be diversified away by investing in both XS Financial and New Amer 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 XS Financial and New Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XS Financial and New Amer Energy, you can compare the effects of market volatilities on XS Financial and New Amer 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 XS Financial with a short position of New Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of XS Financial and New Amer.
Diversification Opportunities for XS Financial and New Amer
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between XSHLF and New is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding XS Financial and New Amer Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Amer Energy and XS Financial 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 XS Financial are associated (or correlated) with New Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Amer Energy has no effect on the direction of XS Financial i.e., XS Financial and New Amer go up and down completely randomly.
Pair Corralation between XS Financial and New Amer
If you would invest 3.40 in XS Financial on August 30, 2024 and sell it today you would earn a total of 0.49 from holding XS Financial or generate 14.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.19% |
| Values | Daily Returns |
XS Financial vs. New Amer Energy
Performance |
| Timeline |
| XS Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| New Amer Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XS Financial and New Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XS Financial and New Amer
The main advantage of trading using opposite XS Financial and New Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XS Financial position performs unexpectedly, New Amer 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 New Amer will offset losses from the drop in New Amer's long position.| XS Financial vs. Zip Co Limited | XS Financial vs. KYN Capital Group | XS Financial vs. CYIOS | XS Financial vs. Cosmos Group Holdings |
| New Amer vs. Cosmos Group Holdings | New Amer vs. CYIOS | New Amer vs. Mill City Ventures | New Amer vs. Finance of America |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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