Correlation Between Xebec Adsorption and Dear Cashmere
Can any of the company-specific risk be diversified away by investing in both Xebec Adsorption and Dear Cashmere 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 Xebec Adsorption and Dear Cashmere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xebec Adsorption and Dear Cashmere Holding, you can compare the effects of market volatilities on Xebec Adsorption and Dear Cashmere 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 Xebec Adsorption with a short position of Dear Cashmere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xebec Adsorption and Dear Cashmere.
Diversification Opportunities for Xebec Adsorption and Dear Cashmere
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xebec and Dear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xebec Adsorption and Dear Cashmere Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dear Cashmere Holding and Xebec Adsorption 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 Xebec Adsorption are associated (or correlated) with Dear Cashmere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dear Cashmere Holding has no effect on the direction of Xebec Adsorption i.e., Xebec Adsorption and Dear Cashmere go up and down completely randomly.
Pair Corralation between Xebec Adsorption and Dear Cashmere
Assuming the 90 days horizon Xebec Adsorption is expected to generate 1.95 times more return on investment than Dear Cashmere. However, Xebec Adsorption is 1.95 times more volatile than Dear Cashmere Holding. It trades about 0.08 of its potential returns per unit of risk. Dear Cashmere Holding is currently generating about 0.05 per unit of risk. If you would invest 0.01 in Xebec Adsorption on December 2, 2024 and sell it today you would lose (0.01) from holding Xebec Adsorption or give up 100.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.6% |
Values | Daily Returns |
Xebec Adsorption vs. Dear Cashmere Holding
Performance |
Timeline |
Xebec Adsorption |
Dear Cashmere Holding |
Xebec Adsorption and Dear Cashmere Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xebec Adsorption and Dear Cashmere
The main advantage of trading using opposite Xebec Adsorption and Dear Cashmere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xebec Adsorption position performs unexpectedly, Dear Cashmere 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 Dear Cashmere will offset losses from the drop in Dear Cashmere's long position.Xebec Adsorption vs. Standex International | Xebec Adsorption vs. Intevac | Xebec Adsorption vs. Thermon Group Holdings | Xebec Adsorption vs. Enpro Industries |
Dear Cashmere vs. One World Universe | Dear Cashmere vs. All American Pet | Dear Cashmere vs. Ilustrato Pictures | Dear Cashmere vs. Quality Industrial Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |