Correlation Between Xtract One and Forstrong Global
Can any of the company-specific risk be diversified away by investing in both Xtract One and Forstrong Global 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 Xtract One and Forstrong Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtract One Technologies and Forstrong Global Income, you can compare the effects of market volatilities on Xtract One and Forstrong Global 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 Xtract One with a short position of Forstrong Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtract One and Forstrong Global.
Diversification Opportunities for Xtract One and Forstrong Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtract and Forstrong is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xtract One Technologies and Forstrong Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forstrong Global Income and Xtract One 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 Xtract One Technologies are associated (or correlated) with Forstrong Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forstrong Global Income has no effect on the direction of Xtract One i.e., Xtract One and Forstrong Global go up and down completely randomly.
Pair Corralation between Xtract One and Forstrong Global
Assuming the 90 days trading horizon Xtract One Technologies is expected to generate 14.63 times more return on investment than Forstrong Global. However, Xtract One is 14.63 times more volatile than Forstrong Global Income. It trades about 0.03 of its potential returns per unit of risk. Forstrong Global Income is currently generating about 0.11 per unit of risk. If you would invest 57.00 in Xtract One Technologies on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Xtract One Technologies or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 65.99% |
| Values | Daily Returns |
Xtract One Technologies vs. Forstrong Global Income
Performance |
| Timeline |
| Xtract One Technologies |
| Forstrong Global Income |
Xtract One and Forstrong Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtract One and Forstrong Global
The main advantage of trading using opposite Xtract One and Forstrong Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtract One position performs unexpectedly, Forstrong Global 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 Forstrong Global will offset losses from the drop in Forstrong Global's long position.| Xtract One vs. Slate Grocery REIT | Xtract One vs. Roots Corp | Xtract One vs. Aimia Inc | Xtract One vs. Tucows Inc |
| Forstrong Global vs. iShares SPTSX 60 | Forstrong Global vs. iShares Core SP | Forstrong Global vs. iShares Core SPTSX | Forstrong Global vs. BMO Aggregate Bond |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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