Correlation Between Xtant Medical and Beyond Air
Can any of the company-specific risk be diversified away by investing in both Xtant Medical and Beyond Air 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 Beyond Air 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 Beyond Air, you can compare the effects of market volatilities on Xtant Medical and Beyond Air 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 Beyond Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and Beyond Air.
Diversification Opportunities for Xtant Medical and Beyond Air
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtant and Beyond is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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 Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of Xtant Medical i.e., Xtant Medical and Beyond Air go up and down completely randomly.
Pair Corralation between Xtant Medical and Beyond Air
Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 1.05 times more return on investment than Beyond Air. However, Xtant Medical is 1.05 times more volatile than Beyond Air. It trades about 0.16 of its potential returns per unit of risk. Beyond Air is currently generating about 0.1 per unit of risk. If you would invest 44.00 in Xtant Medical Holdings on November 1, 2024 and sell it today you would earn a total of 7.75 from holding Xtant Medical Holdings or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtant Medical Holdings vs. Beyond Air
Performance |
| Timeline |
| Xtant Medical Holdings |
| Beyond Air |
Xtant Medical and Beyond Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtant Medical and Beyond Air
The main advantage of trading using opposite Xtant Medical and Beyond Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical position performs unexpectedly, Beyond Air 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 Beyond Air will offset losses from the drop in Beyond Air's long position.| Xtant Medical vs. Neuropace | Xtant Medical vs. Electromed | Xtant Medical vs. Orthopediatrics Corp | Xtant Medical vs. SurModics |
| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. PAVmed Series Z | Beyond Air vs. Clearpoint Neuro |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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