Correlation Between X Trade and Immobile
Can any of the company-specific risk be diversified away by investing in both X Trade and Immobile 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 Immobile 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 Immobile, you can compare the effects of market volatilities on X Trade and Immobile 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 Immobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and Immobile.
Diversification Opportunities for X Trade and Immobile
Very good diversification
The 3 months correlation between XTB and Immobile is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and Immobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobile 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 Immobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobile has no effect on the direction of X Trade i.e., X Trade and Immobile go up and down completely randomly.
Pair Corralation between X Trade and Immobile
Assuming the 90 days trading horizon X Trade Brokers is expected to under-perform the Immobile. But the stock apears to be less risky and, when comparing its historical volatility, X Trade Brokers is 1.08 times less risky than Immobile. The stock trades about -0.01 of its potential returns per unit of risk. The Immobile is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 190.00 in Immobile on November 24, 2024 and sell it today you would earn a total of 35.00 from holding Immobile or generate 18.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
X Trade Brokers vs. Immobile
Performance |
Timeline |
X Trade Brokers |
Immobile |
X Trade and Immobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with X Trade and Immobile
The main advantage of trading using opposite X Trade and Immobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade position performs unexpectedly, Immobile 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 Immobile will offset losses from the drop in Immobile's long position.X Trade vs. Gaming Factory SA | ||
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Immobile vs. True Games Syndicate |
Check out your portfolio center.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.
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