Correlation Between XAGING CT and XAUING CT

Can any of the company-specific risk be diversified away by investing in both XAGING CT and XAUING CT 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 XAGING CT and XAUING CT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between XAGING CT and XAUING CT, you can compare the effects of market volatilities on XAGING CT and XAUING CT 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 XAGING CT with a short position of XAUING CT. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAGING CT and XAUING CT.

Diversification Opportunities for XAGING CT and XAUING CT

0.0

Correlation Coefficient

XAGING CT  XAUING CT

Pay attention - limited upside

The 3 months correlation between XAGING and XAUING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XAGING CT and XAUING CT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAUING CT and XAGING CT 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 XAGING CT are associated (or correlated) with XAUING CT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAUING CT has no effect on the direction of XAGING CT i.e., XAGING CT and XAUING CT go up and down completely randomly.

Pair Corralation between XAGING CT and XAUING CT

If you would invest (100.00) in XAUING CT on September 4, 2024 and sell it today you would earn a total of  100.00  from holding XAUING CT or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

XAGING CT  vs.  XAUING CT

XAGING CT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XAGING CT has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, XAGING CT is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

XAUING CT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XAUING CT has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, XAUING CT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with XAGING CT and XAUING CT

The main advantage of trading using opposite XAGING CT and XAUING CT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAGING CT position performs unexpectedly, XAUING CT 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 XAUING CT will offset losses from the drop in XAUING CT's long position.

The idea behind XAGING CT and XAUING CT pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.