Correlation Between Xcelmobility and Aware

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

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

Diversification Opportunities for Xcelmobility and Aware

0.0

Correlation Coefficient

Xcelmobility  Aware

Pay attention - limited upside

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

Pair Corralation between Xcelmobility and Aware

If you would invest  0.00  in Xcelmobility on September 29, 2024 and sell it today you would earn a total of  0.00  from holding Xcelmobility or generate 0.0% return on investment over 90 days.

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

Xcelmobility  vs.  Aware Inc

Xcelmobility

Risk-Adjusted Performance

0 of 100

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.

Aware Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aware Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Xcelmobility and Aware

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

The idea behind Xcelmobility and Aware 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 Transaction History module to view history of all your transactions and understand their impact on performance.