Correlation Between Vinci S and XTANT MEDICAL

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

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

Diversification Opportunities for Vinci S and XTANT MEDICAL

0.75

Correlation Coefficient

Vinci S  XTANT MEDICAL

Poor diversification

The 3 months correlation between Vinci and XTANT is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vinci S A 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 Vinci S 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 Vinci S A 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 Vinci S i.e., Vinci S and XTANT MEDICAL go up and down completely randomly.

Pair Corralation between Vinci S and XTANT MEDICAL

Assuming the 90 days horizon Vinci S A is expected to generate 0.25 times more return on investment than XTANT MEDICAL. However, Vinci S A is 4.02 times less risky than XTANT MEDICAL. It trades about 0.02 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about 0.0 per unit of risk. If you would invest  8,956  in Vinci S A on September 26, 2024 and sell it today you would earn a total of  848.00  from holding Vinci S A or generate 9.47% return on investment over 90 days.

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

Vinci S A  vs.  XTANT MEDICAL HLDGS

Vinci S A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vinci S A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

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 unsteady 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 Vinci S and XTANT MEDICAL

The main advantage of trading using opposite Vinci S and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinci S 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 Vinci S A 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.