Correlation Between Xylo Technologies and Owens Minor
Can any of the company-specific risk be diversified away by investing in both Xylo Technologies and Owens Minor 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 Xylo Technologies and Owens Minor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xylo Technologies and Owens Minor, you can compare the effects of market volatilities on Xylo Technologies and Owens Minor 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 Xylo Technologies with a short position of Owens Minor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xylo Technologies and Owens Minor.
Diversification Opportunities for Xylo Technologies and Owens Minor
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xylo and Owens is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xylo Technologies and Owens Minor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Minor and Xylo Technologies 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 Xylo Technologies are associated (or correlated) with Owens Minor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owens Minor has no effect on the direction of Xylo Technologies i.e., Xylo Technologies and Owens Minor go up and down completely randomly.
Pair Corralation between Xylo Technologies and Owens Minor
Given the investment horizon of 90 days Xylo Technologies is expected to generate 1.54 times more return on investment than Owens Minor. However, Xylo Technologies is 1.54 times more volatile than Owens Minor. It trades about -0.01 of its potential returns per unit of risk. Owens Minor is currently generating about -0.05 per unit of risk. If you would invest 904.00 in Xylo Technologies on November 9, 2024 and sell it today you would lose (425.00) from holding Xylo Technologies or give up 47.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xylo Technologies vs. Owens Minor
Performance |
| Timeline |
| Xylo Technologies |
| Owens Minor |
Xylo Technologies and Owens Minor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xylo Technologies and Owens Minor
The main advantage of trading using opposite Xylo Technologies and Owens Minor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xylo Technologies position performs unexpectedly, Owens Minor 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 Owens Minor will offset losses from the drop in Owens Minor's long position.| Xylo Technologies vs. Skechers USA | Xylo Technologies vs. Genesco | Xylo Technologies vs. Western Digital | Xylo Technologies vs. Tapestry |
| Owens Minor vs. Henry Schein | Owens Minor vs. Cardinal Health | Owens Minor vs. Zynex Inc | Owens Minor vs. Patterson Companies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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