Correlation Between Xtant Medical and Artisan Partners

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

By analyzing existing cross correlation between Xtant Medical Holdings and Artisan Partners Asset, you can compare the effects of market volatilities on Xtant Medical and Artisan Partners 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 Xtant Medical with a short position of Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and Artisan Partners.

Diversification Opportunities for Xtant Medical and Artisan Partners

0.44

Correlation Coefficient

Xtant Medical  Artisan Partners

Very weak diversification

The 3 months correlation between Xtant and Artisan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset and Xtant Medical 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 Xtant Medical Holdings are associated (or correlated) with Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of Xtant Medical i.e., Xtant Medical and Artisan Partners go up and down completely randomly.

Pair Corralation between Xtant Medical and Artisan Partners

Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 3.25 times more return on investment than Artisan Partners. However, Xtant Medical is 3.25 times more volatile than Artisan Partners Asset. It trades about 0.05 of its potential returns per unit of risk. Artisan Partners Asset is currently generating about -0.05 per unit of risk. If you would invest  46.00  in Xtant Medical Holdings on December 28, 2024 and sell it today you would earn a total of  2.94  from holding Xtant Medical Holdings or generate 6.39% return on investment over 90 days.

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

Xtant Medical Holdings  vs.  Artisan Partners Asset

Xtant Medical Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Xtant Medical Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Xtant Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Artisan Partners Asset

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Xtant Medical and Artisan Partners

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

The idea behind Xtant Medical Holdings and Artisan Partners Asset 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..