Correlation Between XWELL and Park Lawn
Can any of the company-specific risk be diversified away by investing in both XWELL and Park Lawn 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 Park Lawn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XWELL Inc and Park Lawn, you can compare the effects of market volatilities on XWELL and Park Lawn 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 Park Lawn. Check out your portfolio center. Please also check ongoing floating volatility patterns of XWELL and Park Lawn.
Diversification Opportunities for XWELL and Park Lawn
Very good diversification
The 3 months correlation between XWELL and Park is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding XWELL Inc and Park Lawn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Lawn 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 Park Lawn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Lawn has no effect on the direction of XWELL i.e., XWELL and Park Lawn go up and down completely randomly.
Pair Corralation between XWELL and Park Lawn
Given the investment horizon of 90 days XWELL Inc is expected to under-perform the Park Lawn. In addition to that, XWELL is 1.33 times more volatile than Park Lawn. It trades about -0.03 of its total potential returns per unit of risk. Park Lawn is currently generating about 0.02 per unit of volatility. If you would invest 1,857 in Park Lawn on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Park Lawn or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.25% |
| Values | Daily Returns |
XWELL Inc vs. Park Lawn
Performance |
| Timeline |
| XWELL Inc |
| Park Lawn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XWELL and Park Lawn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XWELL and Park Lawn
The main advantage of trading using opposite XWELL and Park Lawn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XWELL position performs unexpectedly, Park Lawn 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 Park Lawn will offset losses from the drop in Park Lawn's long position.| XWELL vs. Mister Car Wash | XWELL vs. Interactive Strength Common | XWELL vs. Goodfood Market Corp | XWELL vs. Frontdoor |
| Park Lawn vs. XWELL Inc | Park Lawn vs. Mister Car Wash | Park Lawn vs. Interactive Strength Common | Park Lawn vs. Goodfood Market Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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