Correlation Between XWELL and American International
Can any of the company-specific risk be diversified away by investing in both XWELL and American International 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 XWELL and American International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XWELL Inc and American International Holdings, you can compare the effects of market volatilities on XWELL and American International 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 XWELL with a short position of American International. Check out your portfolio center. Please also check ongoing floating volatility patterns of XWELL and American International.
Diversification Opportunities for XWELL and American International
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between XWELL and American is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding XWELL Inc and American International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American International and XWELL 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 XWELL Inc are associated (or correlated) with American International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American International has no effect on the direction of XWELL i.e., XWELL and American International go up and down completely randomly.
Pair Corralation between XWELL and American International
Given the investment horizon of 90 days XWELL Inc is expected to under-perform the American International. But the stock apears to be less risky and, when comparing its historical volatility, XWELL Inc is 81.69 times less risky than American International. The stock trades about -0.37 of its potential returns per unit of risk. The American International Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.01 in American International Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding American International Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XWELL Inc vs. American International Holding
Performance |
| Timeline |
| XWELL Inc |
| American International |
XWELL and American International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XWELL and American International
The main advantage of trading using opposite XWELL and American International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XWELL position performs unexpectedly, American International 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 American International will offset losses from the drop in American International's long position.| XWELL vs. Mister Car Wash | XWELL vs. Interactive Strength Common | XWELL vs. Goodfood Market Corp | XWELL vs. Frontdoor |
| American International vs. DTE Energy | American International vs. Rollins | American International vs. Service International | American International vs. HR Block |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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