Correlation Between Xiabuxiabu Catering and Patterson UTI

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

By analyzing existing cross correlation between Xiabuxiabu Catering Management and Patterson UTI Energy, you can compare the effects of market volatilities on Xiabuxiabu Catering and Patterson UTI 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 Xiabuxiabu Catering with a short position of Patterson UTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiabuxiabu Catering and Patterson UTI.

Diversification Opportunities for Xiabuxiabu Catering and Patterson UTI

0.11

Correlation Coefficient

Xiabuxiabu Catering  Patterson UTI

Average diversification

The 3 months correlation between Xiabuxiabu and Patterson is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management and Patterson UTI Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI Energy and Xiabuxiabu Catering 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 Xiabuxiabu Catering Management are associated (or correlated) with Patterson UTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of Xiabuxiabu Catering i.e., Xiabuxiabu Catering and Patterson UTI go up and down completely randomly.

Pair Corralation between Xiabuxiabu Catering and Patterson UTI

If you would invest  14.00  in Xiabuxiabu Catering Management on September 21, 2024 and sell it today you would earn a total of  0.00  from holding Xiabuxiabu Catering Management or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Xiabuxiabu Catering Management  vs.  Patterson UTI Energy

Xiabuxiabu Catering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Patterson UTI Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Patterson UTI Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Xiabuxiabu Catering and Patterson UTI

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

The idea behind Xiabuxiabu Catering Management and Patterson UTI Energy 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.