Correlation Between Volitionrx and Xylo Technologies

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

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

Diversification Opportunities for Volitionrx and Xylo Technologies

-0.37

Correlation Coefficient

Volitionrx  Xylo Technologies

Very good diversification

The 3 months correlation between Volitionrx and Xylo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Volitionrx and Xylo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xylo Technologies and Volitionrx 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 Volitionrx are associated (or correlated) with Xylo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xylo Technologies has no effect on the direction of Volitionrx i.e., Volitionrx and Xylo Technologies go up and down completely randomly.

Pair Corralation between Volitionrx and Xylo Technologies

Given the investment horizon of 90 days Volitionrx is expected to generate 1.12 times less return on investment than Xylo Technologies. In addition to that, Volitionrx is 1.21 times more volatile than Xylo Technologies. It trades about 0.02 of its total potential returns per unit of risk. Xylo Technologies is currently generating about 0.03 per unit of volatility. If you would invest  379.00  in Xylo Technologies on September 13, 2024 and sell it today you would earn a total of  1.00  from holding Xylo Technologies or generate 0.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Volitionrx  vs.  Xylo Technologies

Volitionrx

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Volitionrx are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Volitionrx may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Xylo Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xylo Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, Xylo Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Volitionrx and Xylo Technologies

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

The idea behind Volitionrx and Xylo Technologies 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.