Correlation Between Examobile and X Trade

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Can any of the company-specific risk be diversified away by investing in both Examobile and X Trade 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 Examobile and X Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Examobile SA and X Trade Brokers, you can compare the effects of market volatilities on Examobile and X Trade 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 Examobile with a short position of X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and X Trade.

Diversification Opportunities for Examobile and X Trade

ExamobileXTBDiversified AwayExamobileXTBDiversified Away100%
0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Examobile and XTB is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers and Examobile 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 Examobile SA are associated (or correlated) with X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Examobile i.e., Examobile and X Trade go up and down completely randomly.

Pair Corralation between Examobile and X Trade

Assuming the 90 days trading horizon Examobile SA is expected to generate 1.34 times more return on investment than X Trade. However, Examobile is 1.34 times more volatile than X Trade Brokers. It trades about 0.02 of its potential returns per unit of risk. X Trade Brokers is currently generating about -0.01 per unit of risk. If you would invest  336.00  in Examobile SA on November 24, 2024 and sell it today you would earn a total of  2.00  from holding Examobile SA or generate 0.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy50.85%
ValuesDaily Returns

Examobile SA  vs.  X Trade Brokers

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15EXA XTB
       Timeline  
Examobile SA 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Examobile SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Examobile is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15OctNovDecJanFebNovDecJanFeb33.544.5
X Trade Brokers 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days X Trade Brokers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, X Trade is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6466687072747678

Examobile and X Trade Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-15.85-11.87-7.89-3.91-0.023.847.8811.9315.9720.01 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15EXA XTB
       Returns  

Pair Trading with Examobile and X Trade

The main advantage of trading using opposite Examobile and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Examobile position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.
The idea behind Examobile SA and X Trade Brokers 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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