Correlation Between XCPCNL Business and International Consolidated

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

By analyzing existing cross correlation between XCPCNL Business Services and International Consolidated Companies, you can compare the effects of market volatilities on XCPCNL Business and International Consolidated 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 XCPCNL Business with a short position of International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCPCNL Business and International Consolidated.

Diversification Opportunities for XCPCNL Business and International Consolidated

0.0

Correlation Coefficient

XCPCNL Business  International Consolidated

Pay attention - limited upside

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

Pair Corralation between XCPCNL Business and International Consolidated

Given the investment horizon of 90 days XCPCNL Business Services is expected to under-perform the International Consolidated. But the pink sheet apears to be less risky and, when comparing its historical volatility, XCPCNL Business Services is 17.91 times less risky than International Consolidated. The pink sheet trades about -0.13 of its potential returns per unit of risk. The International Consolidated Companies is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  20.00  in International Consolidated Companies on September 28, 2024 and sell it today you would lose (18.40) from holding International Consolidated Companies or give up 92.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

XCPCNL Business Services  vs.  International Consolidated Com

XCPCNL Business Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XCPCNL Business Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

International Consolidated

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in International Consolidated Companies are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, International Consolidated exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with XCPCNL Business and International Consolidated

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

The idea behind XCPCNL Business Services and International Consolidated Companies 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.