Correlation Between Xtant Medical and First Ship
Can any of the company-specific risk be diversified away by investing in both Xtant Medical and First Ship 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 Xtant Medical and First Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtant Medical Holdings and First Ship Lease, you can compare the effects of market volatilities on Xtant Medical and First Ship 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 Xtant Medical with a short position of First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and First Ship.
Diversification Opportunities for Xtant Medical and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtant and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease and Xtant Medical 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 Xtant Medical Holdings are associated (or correlated) with First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Xtant Medical i.e., Xtant Medical and First Ship go up and down completely randomly.
Pair Corralation between Xtant Medical and First Ship
Given the investment horizon of 90 days Xtant Medical is expected to generate 2.61 times less return on investment than First Ship. In addition to that, Xtant Medical is 1.77 times more volatile than First Ship Lease. It trades about 0.01 of its total potential returns per unit of risk. First Ship Lease is currently generating about 0.04 per unit of volatility. If you would invest 2.50 in First Ship Lease on October 1, 2024 and sell it today you would earn a total of 1.50 from holding First Ship Lease or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtant Medical Holdings vs. First Ship Lease
Performance |
| Timeline |
| Xtant Medical Holdings |
| First Ship Lease |
Xtant Medical and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtant Medical and First Ship
The main advantage of trading using opposite Xtant Medical and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.| Xtant Medical vs. Cigna Corp | Xtant Medical vs. Definitive Healthcare Corp | Xtant Medical vs. Guardant Health | Xtant Medical vs. Laboratory of |
| First Ship vs. Black Diamond Group | First Ship vs. Alta Equipment Group | First Ship vs. Fortress Transportation and | First Ship vs. Triton International Limited |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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