Correlation Between Cooper Stnd and Xos Equity

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

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

Diversification Opportunities for Cooper Stnd and Xos Equity

-0.44

Correlation Coefficient

Cooper Stnd  Xos Equity

Very good diversification

The 3 months correlation between Cooper and Xos is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Stnd and Xos Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xos Equity Warrants and Cooper Stnd 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 Cooper Stnd are associated (or correlated) with Xos Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xos Equity Warrants has no effect on the direction of Cooper Stnd i.e., Cooper Stnd and Xos Equity go up and down completely randomly.

Pair Corralation between Cooper Stnd and Xos Equity

Considering the 90-day investment horizon Cooper Stnd is expected to generate 0.26 times more return on investment than Xos Equity. However, Cooper Stnd is 3.89 times less risky than Xos Equity. It trades about 0.07 of its potential returns per unit of risk. Xos Equity Warrants is currently generating about -0.1 per unit of risk. If you would invest  1,390  in Cooper Stnd on September 13, 2024 and sell it today you would earn a total of  172.00  from holding Cooper Stnd or generate 12.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	87.3%
Values	Daily Returns

Cooper Stnd  vs.  Xos Equity Warrants

Cooper Stnd

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cooper Stnd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Cooper Stnd unveiled solid returns over the last few months and may actually be approaching a breakup point.

Xos Equity Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xos Equity Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Cooper Stnd and Xos Equity

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

The idea behind Cooper Stnd and Xos Equity Warrants 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.