Correlation Between XMReality and Acconeer

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

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

Diversification Opportunities for XMReality and Acconeer

0.55

Correlation Coefficient

XMReality  Acconeer

Very weak diversification

The 3 months correlation between XMReality and Acconeer is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding XMReality AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and XMReality 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 XMReality AB are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of XMReality i.e., XMReality and Acconeer go up and down completely randomly.

Pair Corralation between XMReality and Acconeer

Assuming the 90 days trading horizon XMReality AB is expected to under-perform the Acconeer. In addition to that, XMReality is 1.63 times more volatile than Acconeer AB. It trades about -0.05 of its total potential returns per unit of risk. Acconeer AB is currently generating about 0.0 per unit of volatility. If you would invest  565.00  in Acconeer AB on November 29, 2024 and sell it today you would lose (20.00) from holding Acconeer AB or give up 3.54% of portfolio value over 90 days.

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

XMReality AB  vs.  Acconeer AB

XMReality AB

Risk-Adjusted Performance

Very Weak

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

Acconeer AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acconeer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Acconeer is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with XMReality and Acconeer

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

The idea behind XMReality AB and Acconeer 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.