Correlation Between Xeros Technology and Anglesey Mining

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

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

Diversification Opportunities for Xeros Technology and Anglesey Mining

0.77

Correlation Coefficient

Xeros Technology  Anglesey Mining

Poor diversification

The 3 months correlation between Xeros and Anglesey is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xeros Technology Group and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining and Xeros Technology 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 Xeros Technology Group are associated (or correlated) with Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Xeros Technology i.e., Xeros Technology and Anglesey Mining go up and down completely randomly.

Pair Corralation between Xeros Technology and Anglesey Mining

Assuming the 90 days trading horizon Xeros Technology Group is expected to under-perform the Anglesey Mining. But the stock apears to be less risky and, when comparing its historical volatility, Xeros Technology Group is 1.17 times less risky than Anglesey Mining. The stock trades about -0.28 of its potential returns per unit of risk. The Anglesey Mining is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  102.00  in Anglesey Mining on September 28, 2024 and sell it today you would lose (29.00) from holding Anglesey Mining or give up 28.43% of portfolio value over 90 days.

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

Xeros Technology Group  vs.  Anglesey Mining

Xeros Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xeros Technology Group 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Anglesey Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anglesey Mining 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Xeros Technology and Anglesey Mining

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

The idea behind Xeros Technology Group and Anglesey Mining 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.