Correlation Between Xalles Holdings and 9F

Can any of the company-specific risk be diversified away by investing in both Xalles Holdings and 9F 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 Xalles Holdings and 9F into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Xalles Holdings and 9F Inc, you can compare the effects of market volatilities on Xalles Holdings and 9F 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 Xalles Holdings with a short position of 9F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xalles Holdings and 9F.

Diversification Opportunities for Xalles Holdings and 9F

0.07

Correlation Coefficient

Xalles Holdings  9F

Significant diversification

The 3 months correlation between Xalles and 9F is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Xalles Holdings and 9F Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 9F Inc and Xalles Holdings 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 Xalles Holdings are associated (or correlated) with 9F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 9F Inc has no effect on the direction of Xalles Holdings i.e., Xalles Holdings and 9F go up and down completely randomly.

Pair Corralation between Xalles Holdings and 9F

Given the investment horizon of 90 days Xalles Holdings is expected to generate 4.84 times more return on investment than 9F. However, Xalles Holdings is 4.84 times more volatile than 9F Inc. It trades about 0.05 of its potential returns per unit of risk. 9F Inc is currently generating about -0.02 per unit of risk. If you would invest  0.05  in Xalles Holdings on December 26, 2024 and sell it today you would lose (0.01) from holding Xalles Holdings or give up 20.0% of portfolio value over 90 days.

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

Xalles Holdings  vs.  9F Inc

Xalles Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Xalles Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, Xalles Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

9F Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days 9F Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, 9F is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Xalles Holdings and 9F

The main advantage of trading using opposite Xalles Holdings and 9F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xalles Holdings position performs unexpectedly, 9F 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 9F will offset losses from the drop in 9F's long position.

The idea behind Xalles Holdings and 9F Inc 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.