Correlation Between XTI Aerospace, and ScanSource
Can any of the company-specific risk be diversified away by investing in both XTI Aerospace, and ScanSource 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 ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTI Aerospace, and ScanSource, you can compare the effects of market volatilities on XTI Aerospace, and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTI Aerospace, and ScanSource.
Diversification Opportunities for XTI Aerospace, and ScanSource
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XTI and ScanSource is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding XTI Aerospace, and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of XTI Aerospace, i.e., XTI Aerospace, and ScanSource go up and down completely randomly.
Pair Corralation between XTI Aerospace, and ScanSource
Given the investment horizon of 90 days XTI Aerospace, is expected to under-perform the ScanSource. In addition to that, XTI Aerospace, is 5.34 times more volatile than ScanSource. It trades about -0.11 of its total potential returns per unit of risk. ScanSource is currently generating about 0.06 per unit of volatility. If you would invest 3,031 in ScanSource on September 2, 2024 and sell it today you would earn a total of 2,010 from holding ScanSource or generate 66.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTI Aerospace, vs. ScanSource
Performance |
| Timeline |
| XTI Aerospace, |
| ScanSource |
XTI Aerospace, and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTI Aerospace, and ScanSource
The main advantage of trading using opposite XTI Aerospace, and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTI Aerospace, position performs unexpectedly, ScanSource 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 ScanSource will offset losses from the drop in ScanSource'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 |
| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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