Correlation Between Xerox and Siriuspoint

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

By analyzing existing cross correlation between Xerox 675 percent and Siriuspoint, you can compare the effects of market volatilities on Xerox and Siriuspoint 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 Xerox with a short position of Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xerox and Siriuspoint.

Diversification Opportunities for Xerox and Siriuspoint

0.0

Correlation Coefficient

Xerox  Siriuspoint

Pay attention - limited upside

The 3 months correlation between Xerox and Siriuspoint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xerox 675 percent and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint and Xerox 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 Xerox 675 percent are associated (or correlated) with Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Xerox i.e., Xerox and Siriuspoint go up and down completely randomly.

Pair Corralation between Xerox and Siriuspoint

If you would invest  1,447  in Siriuspoint on September 5, 2024 and sell it today you would earn a total of  109.00  from holding Siriuspoint or generate 7.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Xerox 675 percent  vs.  Siriuspoint

Xerox 675 percent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xerox 675 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Xerox is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Siriuspoint

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siriuspoint are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Siriuspoint may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Xerox and Siriuspoint

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

The idea behind Xerox 675 percent and Siriuspoint 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.