Correlation Between Xtra Energy and Interups
Can any of the company-specific risk be diversified away by investing in both Xtra Energy and Interups 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 Xtra Energy and Interups into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtra Energy Corp and Interups, you can compare the effects of market volatilities on Xtra Energy and Interups 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 Xtra Energy with a short position of Interups. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtra Energy and Interups.
Diversification Opportunities for Xtra Energy and Interups
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtra and Interups is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtra Energy Corp and Interups in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interups and Xtra Energy 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 Xtra Energy Corp are associated (or correlated) with Interups. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interups has no effect on the direction of Xtra Energy i.e., Xtra Energy and Interups go up and down completely randomly.
Pair Corralation between Xtra Energy and Interups
Given the investment horizon of 90 days Xtra Energy Corp is expected to generate 1.47 times more return on investment than Interups. However, Xtra Energy is 1.47 times more volatile than Interups. It trades about 0.06 of its potential returns per unit of risk. Interups is currently generating about 0.01 per unit of risk. If you would invest 11.00 in Xtra Energy Corp on November 5, 2024 and sell it today you would earn a total of 11.00 from holding Xtra Energy Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtra Energy Corp vs. Interups
Performance |
| Timeline |
| Xtra Energy Corp |
| Interups |
Xtra Energy and Interups Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtra Energy and Interups
The main advantage of trading using opposite Xtra Energy and Interups positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtra Energy position performs unexpectedly, Interups 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 Interups will offset losses from the drop in Interups' long position.| Xtra Energy vs. XCana Petroleum | Xtra Energy vs. New Generation Consumer | Xtra Energy vs. Arsenal Digital Holdings | Xtra Energy vs. UHF Logistics Group |
| Interups vs. Church Crawford | Interups vs. Kasten Inc | Interups vs. Active Health Foods | Interups vs. Gold Ent Group |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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