Correlation Between X Trade and Altustfi

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

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

Diversification Opportunities for X Trade and Altustfi

0.49

Correlation Coefficient

X Trade  Altustfi

Very weak diversification

The 3 months correlation between XTB and Altustfi is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and Altustfi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altustfi and X Trade 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 X Trade Brokers are associated (or correlated) with Altustfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altustfi has no effect on the direction of X Trade i.e., X Trade and Altustfi go up and down completely randomly.

Pair Corralation between X Trade and Altustfi

Assuming the 90 days trading horizon X Trade Brokers is expected to generate 0.85 times more return on investment than Altustfi. However, X Trade Brokers is 1.18 times less risky than Altustfi. It trades about -0.05 of its potential returns per unit of risk. Altustfi is currently generating about -0.09 per unit of risk. If you would invest  7,240  in X Trade Brokers on December 4, 2024 and sell it today you would lose (622.00) from holding X Trade Brokers or give up 8.59% of portfolio value over 90 days.

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

X Trade Brokers  vs.  Altustfi

X Trade Brokers

Risk-Adjusted Performance

Very Weak

Over the last 90 days X Trade Brokers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Altustfi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altustfi has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with X Trade and Altustfi

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

The idea behind X Trade Brokers and Altustfi 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.