Correlation Between XTANT MEDICAL and Ur Energy

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

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

Diversification Opportunities for XTANT MEDICAL and Ur Energy

-0.23

Correlation Coefficient

XTANT MEDICAL  Ur Energy

Very good diversification

The 3 months correlation between XTANT and U9T is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and Ur Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ur Energy and XTANT MEDICAL 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 XTANT MEDICAL HLDGS are associated (or correlated) with Ur Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ur Energy has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and Ur Energy go up and down completely randomly.

Pair Corralation between XTANT MEDICAL and Ur Energy

If you would invest  33.00  in XTANT MEDICAL HLDGS on October 15, 2024 and sell it today you would earn a total of  11.00  from holding XTANT MEDICAL HLDGS or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	6.25%
Values	Daily Returns

XTANT MEDICAL HLDGS  vs.  Ur Energy

XTANT MEDICAL HLDGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XTANT MEDICAL HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady 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.

Ur Energy

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Ur Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ur Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with XTANT MEDICAL and Ur Energy

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

The idea behind XTANT MEDICAL HLDGS and Ur 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.