Correlation Between Xcelmobility and Auddia

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

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

Diversification Opportunities for Xcelmobility and Auddia

0.0

Correlation Coefficient

Xcelmobility  Auddia

Pay attention - limited upside

The 3 months correlation between Xcelmobility and Auddia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xcelmobility and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc and Xcelmobility 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 Xcelmobility are associated (or correlated) with Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of Xcelmobility i.e., Xcelmobility and Auddia go up and down completely randomly.

Pair Corralation between Xcelmobility and Auddia

If you would invest  2.50  in Auddia Inc on December 31, 2024 and sell it today you would lose (0.61) from holding Auddia Inc or give up 24.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	65.0%
Values	Daily Returns

Xcelmobility  vs.  Auddia Inc

Xcelmobility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xcelmobility has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Xcelmobility is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Auddia Inc

Risk-Adjusted Performance

Insignificant

Over the last 90 days Auddia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly fragile fundamental indicators, Auddia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xcelmobility and Auddia

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

The idea behind Xcelmobility and Auddia 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.

Check out your portfolio center.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.