Correlation Between AMXING CT and XAGING CT

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

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

Diversification Opportunities for AMXING CT and XAGING CT

0.0

Correlation Coefficient

AMXING CT  XAGING CT

Pay attention - limited upside

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

Pair Corralation between AMXING CT and XAGING CT

If you would invest (100.00) in XAGING CT on September 4, 2024 and sell it today you would earn a total of  100.00  from holding XAGING 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

AMXING CT  vs.  XAGING CT

AMXING CT

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with AMXING CT and XAGING CT

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

The idea behind AMXING CT and XAGING 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 Transaction History module to view history of all your transactions and understand their impact on performance.