Correlation Between X Trade and Examobile

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Can any of the company-specific risk be diversified away by investing in both X Trade and Examobile 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 Examobile 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 Examobile SA, you can compare the effects of market volatilities on X Trade and Examobile 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 Examobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and Examobile.

Diversification Opportunities for X Trade and Examobile

XTBExamobileDiversified AwayXTBExamobileDiversified Away100%
0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between XTB and Examobile is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and Examobile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Examobile SA 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 Examobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Examobile SA has no effect on the direction of X Trade i.e., X Trade and Examobile go up and down completely randomly.

Pair Corralation between X Trade and Examobile

Assuming the 90 days trading horizon X Trade Brokers is expected to under-perform the Examobile. But the stock apears to be less risky and, when comparing its historical volatility, X Trade Brokers is 1.34 times less risky than Examobile. The stock trades about -0.01 of its potential returns per unit of risk. The Examobile SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  336.00  in Examobile SA on November 24, 2024 and sell it today you would earn a total of  2.00  from holding Examobile SA or generate 0.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy50.85%
ValuesDaily Returns

X Trade Brokers  vs.  Examobile SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15XTB EXA
       Timeline  
X Trade Brokers 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days X Trade Brokers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, X Trade is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6466687072747678
Examobile SA 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Examobile SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Examobile is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15OctNovDecJanFebNovDecJanFeb33.544.5

X Trade and Examobile Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.78-2.83-1.88-0.930.00.941.882.833.77 0.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15XTB EXA
       Returns  

Pair Trading with X Trade and Examobile

The main advantage of trading using opposite X Trade and Examobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade position performs unexpectedly, Examobile 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 Examobile will offset losses from the drop in Examobile's long position.
The idea behind X Trade Brokers and Examobile SA 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 Stocks Directory module to find actively traded stocks across global markets.

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