Correlation Between CVR Medical and XTANT MEDICAL

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

By analyzing existing cross correlation between CVR Medical Corp and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on CVR Medical and XTANT MEDICAL 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 CVR Medical with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Medical and XTANT MEDICAL.

Diversification Opportunities for CVR Medical and XTANT MEDICAL

0.0

Correlation Coefficient

CVR Medical  XTANT MEDICAL

Pay attention - limited upside

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

Pair Corralation between CVR Medical and XTANT MEDICAL

If you would invest  65.00  in XTANT MEDICAL HLDGS on September 28, 2024 and sell it today you would lose (31.00) from holding XTANT MEDICAL HLDGS or give up 47.69% of portfolio value over 90 days.

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

CVR Medical Corp  vs.  XTANT MEDICAL HLDGS

CVR Medical Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CVR Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CVR Medical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

XTANT MEDICAL HLDGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XTANT MEDICAL HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CVR Medical and XTANT MEDICAL

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

The idea behind CVR Medical Corp and XTANT MEDICAL HLDGS 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.