Correlation Between Southern Trust and XTRA Bitcoin

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

By analyzing existing cross correlation between Southern Trust Securities and XTRA Bitcoin, you can compare the effects of market volatilities on Southern Trust and XTRA Bitcoin 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 Southern Trust with a short position of XTRA Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Trust and XTRA Bitcoin.

Diversification Opportunities for Southern Trust and XTRA Bitcoin

0.0

Correlation Coefficient

Southern Trust  XTRA Bitcoin

Pay attention - limited upside

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

Pair Corralation between Southern Trust and XTRA Bitcoin

If you would invest  0.00  in Southern Trust Securities on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Southern Trust Securities or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Southern Trust Securities  vs.  XTRA Bitcoin

Southern Trust Securities

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Southern Trust Securities has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Southern Trust is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

XTRA Bitcoin

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in XTRA Bitcoin are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, XTRA Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Southern Trust and XTRA Bitcoin

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

The idea behind Southern Trust Securities and XTRA Bitcoin 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.