Correlation Between Xenonics Holdings and Pioneer Power

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

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

Diversification Opportunities for Xenonics Holdings and Pioneer Power

0.0

Correlation Coefficient

Xenonics Holdings  Pioneer Power

Pay attention - limited upside

The 3 months correlation between Xenonics and Pioneer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xenonics Holdings and Pioneer Power Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Power Solutions and Xenonics Holdings 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 Xenonics Holdings are associated (or correlated) with Pioneer Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Power Solutions has no effect on the direction of Xenonics Holdings i.e., Xenonics Holdings and Pioneer Power go up and down completely randomly.

Pair Corralation between Xenonics Holdings and Pioneer Power

If you would invest (100.00) in Xenonics Holdings on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Xenonics Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Xenonics Holdings  vs.  Pioneer Power Solutions

Xenonics Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xenonics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Xenonics Holdings is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pioneer Power Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pioneer Power Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Xenonics Holdings and Pioneer Power

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

The idea behind Xenonics Holdings and Pioneer Power Solutions 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 Correlations module to find global opportunities by holding instruments from different markets.