Correlation Between INGERSOLL and Xtant Medical

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

By analyzing existing cross correlation between INGERSOLL RAND LUXEMBOURG FIN and Xtant Medical Holdings, you can compare the effects of market volatilities on INGERSOLL 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 INGERSOLL with a short position of Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INGERSOLL and Xtant Medical.

Diversification Opportunities for INGERSOLL and Xtant Medical

-0.52

Correlation Coefficient

INGERSOLL  Xtant Medical

Excellent diversification

The 3 months correlation between INGERSOLL and Xtant is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding INGERSOLL RAND LUXEMBOURG FIN and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical Holdings and INGERSOLL 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 INGERSOLL RAND LUXEMBOURG FIN 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 Holdings has no effect on the direction of INGERSOLL i.e., INGERSOLL and Xtant Medical go up and down completely randomly.

Pair Corralation between INGERSOLL and Xtant Medical

Assuming the 90 days trading horizon INGERSOLL RAND LUXEMBOURG FIN is expected to under-perform the Xtant Medical. But the bond apears to be less risky and, when comparing its historical volatility, INGERSOLL RAND LUXEMBOURG FIN is 2.74 times less risky than Xtant Medical. The bond trades about -0.2 of its potential returns per unit of risk. The Xtant Medical Holdings is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Xtant Medical Holdings on October 8, 2024 and sell it today you would earn a total of  14.00  from holding Xtant Medical Holdings or generate 35.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	15.79%
Values	Daily Returns

INGERSOLL RAND LUXEMBOURG FIN  vs.  Xtant Medical Holdings

INGERSOLL RAND LUXEM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INGERSOLL RAND LUXEMBOURG FIN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for INGERSOLL RAND LUXEMBOURG FIN investors.

Xtant Medical Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xtant Medical Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with INGERSOLL and Xtant Medical

The main advantage of trading using opposite INGERSOLL and Xtant Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INGERSOLL 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 INGERSOLL RAND LUXEMBOURG FIN and Xtant Medical Holdings 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.