Correlation Between XTI Aerospace, and Forge Global
Can any of the company-specific risk be diversified away by investing in both XTI Aerospace, and Forge Global 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 XTI Aerospace, and Forge Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTI Aerospace, and Forge Global Holdings, you can compare the effects of market volatilities on XTI Aerospace, and Forge Global 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 XTI Aerospace, with a short position of Forge Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTI Aerospace, and Forge Global.
Diversification Opportunities for XTI Aerospace, and Forge Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XTI and Forge is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding XTI Aerospace, and Forge Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forge Global Holdings and XTI Aerospace, 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 XTI Aerospace, are associated (or correlated) with Forge Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forge Global Holdings has no effect on the direction of XTI Aerospace, i.e., XTI Aerospace, and Forge Global go up and down completely randomly.
Pair Corralation between XTI Aerospace, and Forge Global
Given the investment horizon of 90 days XTI Aerospace, is expected to under-perform the Forge Global. In addition to that, XTI Aerospace, is 1.33 times more volatile than Forge Global Holdings. It trades about -0.24 of its total potential returns per unit of risk. Forge Global Holdings is currently generating about -0.07 per unit of volatility. If you would invest 126.00 in Forge Global Holdings on August 28, 2024 and sell it today you would lose (18.00) from holding Forge Global Holdings or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTI Aerospace, vs. Forge Global Holdings
Performance |
| Timeline |
| XTI Aerospace, |
| Forge Global Holdings |
XTI Aerospace, and Forge Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTI Aerospace, and Forge Global
The main advantage of trading using opposite XTI Aerospace, and Forge Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTI Aerospace, position performs unexpectedly, Forge Global 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 Forge Global will offset losses from the drop in Forge Global's long position.| XTI Aerospace, vs. NFT Limited | XTI Aerospace, vs. Enlivex Therapeutics | XTI Aerospace, vs. Wisekey International Holding | XTI Aerospace, vs. Sphere 3D Corp |
| Forge Global vs. Scully Royalty | Forge Global vs. Donnelley Financial Solutions | Forge Global vs. Heritage Global | Forge Global vs. Oppenheimer Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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