Correlation Between X Trade and Skyline Investment
Can any of the company-specific risk be diversified away by investing in both X Trade and Skyline Investment 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 X Trade and Skyline Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Trade Brokers and Skyline Investment SA, you can compare the effects of market volatilities on X Trade and Skyline Investment 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 X Trade with a short position of Skyline Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and Skyline Investment.
Diversification Opportunities for X Trade and Skyline Investment
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XTB and Skyline is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and Skyline Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skyline Investment and X Trade 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 X Trade Brokers are associated (or correlated) with Skyline Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skyline Investment has no effect on the direction of X Trade i.e., X Trade and Skyline Investment go up and down completely randomly.
Pair Corralation between X Trade and Skyline Investment
Assuming the 90 days trading horizon X Trade Brokers is expected to generate 0.59 times more return on investment than Skyline Investment. However, X Trade Brokers is 1.7 times less risky than Skyline Investment. It trades about 0.1 of its potential returns per unit of risk. Skyline Investment SA is currently generating about 0.06 per unit of risk. If you would invest 2,389 in X Trade Brokers on August 24, 2024 and sell it today you would earn a total of 4,605 from holding X Trade Brokers or generate 192.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Trade Brokers vs. Skyline Investment SA
Performance |
| Timeline |
| X Trade Brokers |
| Skyline Investment |
X Trade and Skyline Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Trade and Skyline Investment
The main advantage of trading using opposite X Trade and Skyline Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade position performs unexpectedly, Skyline Investment 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 Skyline Investment will offset losses from the drop in Skyline Investment's long position.| X Trade vs. Santander Bank Polska | X Trade vs. Quantum Software SA | X Trade vs. Bank Millennium SA | X Trade vs. Gamedust SA |
| Skyline Investment vs. PLAYWAY SA | Skyline Investment vs. Play2Chill SA | Skyline Investment vs. Movie Games SA | Skyline Investment vs. Intersport Polska SA |
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.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |