Correlation Between Xtant Medical and Granite Real
Can any of the company-specific risk be diversified away by investing in both Xtant Medical and Granite Real 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 Granite Real 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 Granite Real Estate, you can compare the effects of market volatilities on Xtant Medical and Granite Real 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 Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and Granite Real.
Diversification Opportunities for Xtant Medical and Granite Real
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtant and Granite is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate 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 Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of Xtant Medical i.e., Xtant Medical and Granite Real go up and down completely randomly.
Pair Corralation between Xtant Medical and Granite Real
Given the investment horizon of 90 days Xtant Medical is expected to generate 6.27 times less return on investment than Granite Real. In addition to that, Xtant Medical is 2.31 times more volatile than Granite Real Estate. It trades about 0.0 of its total potential returns per unit of risk. Granite Real Estate is currently generating about 0.02 per unit of volatility. If you would invest 4,721 in Granite Real Estate on September 14, 2024 and sell it today you would earn a total of 454.00 from holding Granite Real Estate or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Xtant Medical Holdings vs. Granite Real Estate
Performance |
| Timeline |
| Xtant Medical Holdings |
| Granite Real Estate |
Xtant Medical and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtant Medical and Granite Real
The main advantage of trading using opposite Xtant Medical and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| Xtant Medical vs. Avita Medical | Xtant Medical vs. Sight Sciences | Xtant Medical vs. Treace Medical Concepts | Xtant Medical vs. Neuropace |
| Granite Real vs. Catalent | Granite Real vs. Cebu Air ADR | Granite Real vs. LENSAR Inc | Granite Real vs. Xtant Medical 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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