Correlation Between X3 Holdings and Marin Software
Can any of the company-specific risk be diversified away by investing in both X3 Holdings and Marin Software 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 X3 Holdings and Marin Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X3 Holdings Co and Marin Software, you can compare the effects of market volatilities on X3 Holdings and Marin Software 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 X3 Holdings with a short position of Marin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of X3 Holdings and Marin Software.
Diversification Opportunities for X3 Holdings and Marin Software
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between XTKG and Marin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding X3 Holdings Co and Marin Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marin Software and X3 Holdings 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 X3 Holdings Co are associated (or correlated) with Marin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marin Software has no effect on the direction of X3 Holdings i.e., X3 Holdings and Marin Software go up and down completely randomly.
Pair Corralation between X3 Holdings and Marin Software
Given the investment horizon of 90 days X3 Holdings Co is expected to generate 78.04 times more return on investment than Marin Software. However, X3 Holdings is 78.04 times more volatile than Marin Software. It trades about 0.22 of its potential returns per unit of risk. Marin Software is currently generating about 0.16 per unit of risk. If you would invest 10.00 in X3 Holdings Co on September 1, 2024 and sell it today you would earn a total of 157.00 from holding X3 Holdings Co or generate 1570.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X3 Holdings Co vs. Marin Software
Performance |
| Timeline |
| X3 Holdings |
| Marin Software |
X3 Holdings and Marin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X3 Holdings and Marin Software
The main advantage of trading using opposite X3 Holdings and Marin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X3 Holdings position performs unexpectedly, Marin Software 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 Marin Software will offset losses from the drop in Marin Software's long position.| X3 Holdings vs. LB Foster | X3 Holdings vs. Copa Holdings SA | X3 Holdings vs. Asbury Automotive Group | X3 Holdings vs. National Vision 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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