Correlation Between XAGING CT and XAGRBS CT

Can any of the company-specific risk be diversified away by investing in both XAGING CT and XAGRBS 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 XAGRBS 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 XAGRBS CT, you can compare the effects of market volatilities on XAGING CT and XAGRBS 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 XAGRBS CT. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAGING CT and XAGRBS CT.

Diversification Opportunities for XAGING CT and XAGRBS CT

0.0

Correlation Coefficient

XAGING CT  XAGRBS CT

Pay attention - limited upside

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

Pair Corralation between XAGING CT and XAGRBS CT

If you would invest (100.00) in XAGRBS CT on September 15, 2024 and sell it today you would earn a total of  100.00  from holding XAGRBS 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.  XAGRBS 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.

XAGRBS CT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XAGRBS CT has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, XAGRBS CT is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with XAGING CT and XAGRBS CT

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

The idea behind XAGING CT and XAGRBS 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.