Correlation Between X Trade and PERRIGO

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

Diversification Opportunities for X Trade and PERRIGO

0.0

Correlation Coefficient

X Trade  PERRIGO

Pay attention - limited upside

The 3 months correlation between XTB and PERRIGO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and PERRIGO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERRIGO 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 PERRIGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERRIGO has no effect on the direction of X Trade i.e., X Trade and PERRIGO go up and down completely randomly.

Pair Corralation between X Trade and PERRIGO

If you would invest  6,766  in X Trade Brokers on December 19, 2024 and sell it today you would lose (50.00) from holding X Trade Brokers or give up 0.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

X Trade Brokers  vs.  PERRIGO

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 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.

PERRIGO

Risk-Adjusted Performance

Very Weak

Over the last 90 days PERRIGO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, PERRIGO is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with X Trade and PERRIGO

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

The idea behind X Trade Brokers and PERRIGO 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.