Correlation Between 665859AX2 and Xtant Medical

Can any of the company-specific risk be diversified away by investing in both 665859AX2 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 665859AX2 and Xtant Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NTRS 6125 02 NOV 32 and Xtant Medical Holdings, you can compare the effects of market volatilities on 665859AX2 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 665859AX2 with a short position of Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of 665859AX2 and Xtant Medical.

Diversification Opportunities for 665859AX2 and Xtant Medical

0.57

Correlation Coefficient

665859AX2  Xtant Medical

Very weak diversification

The 3 months correlation between 665859AX2 and Xtant is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding NTRS 6125 02 NOV 32 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 665859AX2 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 NTRS 6125 02 NOV 32 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 665859AX2 i.e., 665859AX2 and Xtant Medical go up and down completely randomly.

Pair Corralation between 665859AX2 and Xtant Medical

Assuming the 90 days trading horizon NTRS 6125 02 NOV 32 is expected to generate 0.19 times more return on investment than Xtant Medical. However, NTRS 6125 02 NOV 32 is 5.29 times less risky than Xtant Medical. It trades about -0.18 of its potential returns per unit of risk. Xtant Medical Holdings is currently generating about -0.15 per unit of risk. If you would invest  11,029  in NTRS 6125 02 NOV 32 on October 3, 2024 and sell it today you would lose (781.00) from holding NTRS 6125 02 NOV 32 or give up 7.08% of portfolio value over 90 days.

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

NTRS 6125 02 NOV 32  vs.  Xtant Medical Holdings

NTRS 6125 02

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NTRS 6125 02 NOV 32 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 NTRS 6125 02 NOV 32 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 665859AX2 and Xtant Medical

The main advantage of trading using opposite 665859AX2 and Xtant Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 665859AX2 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 NTRS 6125 02 NOV 32 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.