Correlation Between Xtra Energy and UMF
Can any of the company-specific risk be diversified away by investing in both Xtra Energy and UMF 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 UMF 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 UMF Group, you can compare the effects of market volatilities on Xtra Energy and UMF 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 UMF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtra Energy and UMF.
Diversification Opportunities for Xtra Energy and UMF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtra and UMF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtra Energy Corp and UMF Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UMF Group 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 UMF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UMF Group has no effect on the direction of Xtra Energy i.e., Xtra Energy and UMF go up and down completely randomly.
Pair Corralation between Xtra Energy and UMF
If you would invest 10.00 in Xtra Energy Corp on November 19, 2024 and sell it today you would earn a total of 15.00 from holding Xtra Energy Corp or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Xtra Energy Corp vs. UMF Group
Performance |
| Timeline |
| Xtra Energy Corp |
| UMF Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xtra Energy and UMF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtra Energy and UMF
The main advantage of trading using opposite Xtra Energy and UMF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtra Energy position performs unexpectedly, UMF 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 UMF will offset losses from the drop in UMF's 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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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