Correlation Between Xavis and Intellian Technologies

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

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

Diversification Opportunities for Xavis and Intellian Technologies

0.75

Correlation Coefficient

Xavis  Intellian Technologies

Poor diversification

The 3 months correlation between Xavis and Intellian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xavis Co and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies and Xavis 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 Xavis Co are associated (or correlated) with Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of Xavis i.e., Xavis and Intellian Technologies go up and down completely randomly.

Pair Corralation between Xavis and Intellian Technologies

Assuming the 90 days trading horizon Xavis is expected to generate 1.32 times less return on investment than Intellian Technologies. But when comparing it to its historical volatility, Xavis Co is 1.22 times less risky than Intellian Technologies. It trades about 0.11 of its potential returns per unit of risk. Intellian Technologies is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,779,893  in Intellian Technologies on October 24, 2024 and sell it today you would earn a total of  165,107  from holding Intellian Technologies or generate 4.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Xavis Co  vs.  Intellian Technologies

Xavis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xavis Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Intellian Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intellian Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Xavis and Intellian Technologies

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

The idea behind Xavis Co and Intellian 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.