Correlation Between Xenonics Holdings and Nxu

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

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

Diversification Opportunities for Xenonics Holdings and Nxu

-0.43

Correlation Coefficient

Xenonics Holdings  Nxu

Very good diversification

The 3 months correlation between Xenonics and Nxu is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xenonics Holdings and Nxu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nxu Inc and Xenonics Holdings 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 Xenonics Holdings are associated (or correlated) with Nxu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nxu Inc has no effect on the direction of Xenonics Holdings i.e., Xenonics Holdings and Nxu go up and down completely randomly.

Pair Corralation between Xenonics Holdings and Nxu

If you would invest  29.00  in Nxu Inc on August 31, 2024 and sell it today you would lose (2.00) from holding Nxu Inc or give up 6.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Xenonics Holdings  vs.  Nxu Inc

Xenonics Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xenonics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Xenonics Holdings is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Nxu Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nxu Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Nxu unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xenonics Holdings and Nxu

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

The idea behind Xenonics Holdings and Nxu Inc 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.