Correlation Between Xelpmoc Design and Refex Industries

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

By analyzing existing cross correlation between Xelpmoc Design And and Refex Industries Limited, you can compare the effects of market volatilities on Xelpmoc Design and Refex Industries 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 Xelpmoc Design with a short position of Refex Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xelpmoc Design and Refex Industries.

Diversification Opportunities for Xelpmoc Design and Refex Industries

-0.19

Correlation Coefficient

Xelpmoc Design  Refex Industries

Good diversification

The 3 months correlation between Xelpmoc and Refex is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Xelpmoc Design And and Refex Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Refex Industries and Xelpmoc Design 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 Xelpmoc Design And are associated (or correlated) with Refex Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Refex Industries has no effect on the direction of Xelpmoc Design i.e., Xelpmoc Design and Refex Industries go up and down completely randomly.

Pair Corralation between Xelpmoc Design and Refex Industries

Assuming the 90 days trading horizon Xelpmoc Design And is expected to generate 0.8 times more return on investment than Refex Industries. However, Xelpmoc Design And is 1.25 times less risky than Refex Industries. It trades about 0.17 of its potential returns per unit of risk. Refex Industries Limited is currently generating about 0.07 per unit of risk. If you would invest  12,977  in Xelpmoc Design And on September 24, 2024 and sell it today you would earn a total of  920.00  from holding Xelpmoc Design And or generate 7.09% return on investment over 90 days.

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

Xelpmoc Design And  vs.  Refex Industries Limited

Xelpmoc Design And

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Xelpmoc Design And are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain primary indicators, Xelpmoc Design exhibited solid returns over the last few months and may actually be approaching a breakup point.

Refex Industries

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Refex Industries Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Refex Industries is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Xelpmoc Design and Refex Industries

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

The idea behind Xelpmoc Design And and Refex Industries Limited 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.