Correlation Between XRP and Bogle Small

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

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

Diversification Opportunities for XRP and Bogle Small

0.16

Correlation Coefficient

XRP  Bogle Small

Average diversification

The 3 months correlation between XRP and Bogle is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Bogle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bogle Small Cap and XRP 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 XRP are associated (or correlated) with Bogle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bogle Small Cap has no effect on the direction of XRP i.e., XRP and Bogle Small go up and down completely randomly.

Pair Corralation between XRP and Bogle Small

Assuming the 90 days trading horizon XRP is expected to generate 4.53 times more return on investment than Bogle Small. However, XRP is 4.53 times more volatile than Bogle Small Cap. It trades about 0.04 of its potential returns per unit of risk. Bogle Small Cap is currently generating about -0.1 per unit of risk. If you would invest  228.00  in XRP on December 19, 2024 and sell it today you would earn a total of  11.00  from holding XRP or generate 4.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

XRP  vs.  Bogle Small Cap

XRP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in XRP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, XRP exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bogle Small Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bogle Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with XRP and Bogle Small

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

The idea behind XRP and Bogle Small Cap 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.