Correlation Between XAGRBS CT and XAGING CT

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

Diversification Opportunities for XAGRBS CT and XAGING CT

0.0

Correlation Coefficient

XAGRBS CT  XAGING CT

Pay attention - limited upside

The 3 months correlation between XAGRBS and XAGING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XAGRBS CT and XAGING CT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAGING CT and XAGRBS 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 XAGRBS 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 XAGRBS CT i.e., XAGRBS CT and XAGING CT go up and down completely randomly.

Pair Corralation between XAGRBS CT and XAGING CT

If you would invest (100.00) in XAGING CT on September 15, 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

XAGRBS CT  vs.  XAGING CT

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.

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 XAGRBS CT and XAGING CT

The main advantage of trading using opposite XAGRBS CT and XAGING CT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAGRBS 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 XAGRBS 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.