Correlation Between Verra Mobility and Xiabuxiabu Catering

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

Diversification Opportunities for Verra Mobility and Xiabuxiabu Catering

VerraXiabuxiabuDiversified AwayVerraXiabuxiabuDiversified Away100%
-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between Verra and Xiabuxiabu is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Verra Mobility Corp and Xiabuxiabu Catering Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiabuxiabu Catering and Verra Mobility 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 Verra Mobility Corp are associated (or correlated) with Xiabuxiabu Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiabuxiabu Catering has no effect on the direction of Verra Mobility i.e., Verra Mobility and Xiabuxiabu Catering go up and down completely randomly.

Pair Corralation between Verra Mobility and Xiabuxiabu Catering

Given the investment horizon of 90 days Verra Mobility Corp is expected to generate 1.02 times more return on investment than Xiabuxiabu Catering. However, Verra Mobility is 1.02 times more volatile than Xiabuxiabu Catering Management. It trades about -0.03 of its potential returns per unit of risk. Xiabuxiabu Catering Management is currently generating about -0.13 per unit of risk. If you would invest  2,673  in Verra Mobility Corp on October 21, 2024 and sell it today you would lose (125.00) from holding Verra Mobility Corp or give up 4.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Verra Mobility Corp  vs.  Xiabuxiabu Catering Management

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-50
JavaScript chart by amCharts 3.21.15VRRM XIAXF
       Timeline  
Verra Mobility Corp 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Verra Mobility Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Verra Mobility is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan23242526
Xiabuxiabu Catering 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.120.1250.130.1350.140.1450.15

Verra Mobility and Xiabuxiabu Catering Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.98-2.23-1.48-0.74-0.0120.71.422.142.863.58 0.060.070.080.090.100.110.120.13
JavaScript chart by amCharts 3.21.15VRRM XIAXF
       Returns  

Pair Trading with Verra Mobility and Xiabuxiabu Catering

The main advantage of trading using opposite Verra Mobility and Xiabuxiabu Catering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verra Mobility position performs unexpectedly, Xiabuxiabu Catering 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 Xiabuxiabu Catering will offset losses from the drop in Xiabuxiabu Catering's long position.
The idea behind Verra Mobility Corp and Xiabuxiabu Catering Management 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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