Correlation Between Xintela AB and Upsales Technology

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

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

Diversification Opportunities for Xintela AB and Upsales Technology

0.72

Correlation Coefficient

Xintela AB  Upsales Technology

Poor diversification

The 3 months correlation between Xintela and Upsales is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xintela AB and Upsales Technology AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upsales Technology and Xintela AB 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 Xintela AB are associated (or correlated) with Upsales Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upsales Technology has no effect on the direction of Xintela AB i.e., Xintela AB and Upsales Technology go up and down completely randomly.

Pair Corralation between Xintela AB and Upsales Technology

Assuming the 90 days trading horizon Xintela AB is expected to generate 1.55 times more return on investment than Upsales Technology. However, Xintela AB is 1.55 times more volatile than Upsales Technology AB. It trades about 0.01 of its potential returns per unit of risk. Upsales Technology AB is currently generating about -0.03 per unit of risk. If you would invest  44.00  in Xintela AB on September 27, 2024 and sell it today you would lose (13.00) from holding Xintela AB or give up 29.55% of portfolio value over 90 days.

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

Xintela AB  vs.  Upsales Technology AB

Xintela AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xintela AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Upsales Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Upsales Technology AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Xintela AB and Upsales Technology

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

The idea behind Xintela AB and Upsales Technology AB 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.