Correlation Between Trimax Corp and Xtra Energy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Trimax Corp and Xtra Energy 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 Trimax Corp and Xtra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimax Corp and Xtra Energy Corp, you can compare the effects of market volatilities on Trimax Corp and Xtra Energy 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 Trimax Corp with a short position of Xtra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimax Corp and Xtra Energy.

Diversification Opportunities for Trimax Corp and Xtra Energy

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Trimax and Xtra is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Trimax Corp and Xtra Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtra Energy Corp and Trimax Corp 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 Trimax Corp are associated (or correlated) with Xtra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtra Energy Corp has no effect on the direction of Trimax Corp i.e., Trimax Corp and Xtra Energy go up and down completely randomly.

Pair Corralation between Trimax Corp and Xtra Energy

Given the investment horizon of 90 days Trimax Corp is expected to generate 2.61 times more return on investment than Xtra Energy. However, Trimax Corp is 2.61 times more volatile than Xtra Energy Corp. It trades about 0.07 of its potential returns per unit of risk. Xtra Energy Corp is currently generating about 0.05 per unit of risk. If you would invest  0.60  in Trimax Corp on September 18, 2024 and sell it today you would lose (0.48) from holding Trimax Corp or give up 80.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy99.8%
ValuesDaily Returns

Trimax Corp  vs.  Xtra Energy Corp

 Performance 
       Timeline  
Trimax Corp 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Trimax Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Trimax Corp displayed solid returns over the last few months and may actually be approaching a breakup point.
Xtra Energy Corp 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Xtra Energy Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Xtra Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Trimax Corp and Xtra Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Trimax Corp and Xtra Energy

The main advantage of trading using opposite Trimax Corp and Xtra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimax Corp position performs unexpectedly, Xtra Energy 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 Xtra Energy will offset losses from the drop in Xtra Energy's long position.
The idea behind Trimax Corp and Xtra Energy Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings