Correlation Between Xtant Medical and Bukit Jalil

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

Diversification Opportunities for Xtant Medical and Bukit Jalil

0.61

Correlation Coefficient

Xtant Medical  Bukit Jalil

Poor diversification

The 3 months correlation between Xtant and Bukit is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global 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 Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of Xtant Medical i.e., Xtant Medical and Bukit Jalil go up and down completely randomly.

Pair Corralation between Xtant Medical and Bukit Jalil

Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 0.25 times more return on investment than Bukit Jalil. However, Xtant Medical Holdings is 4.04 times less risky than Bukit Jalil. It trades about 0.3 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about 0.04 per unit of risk. If you would invest  39.00  in Xtant Medical Holdings on October 9, 2024 and sell it today you would earn a total of  12.00  from holding Xtant Medical Holdings or generate 30.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	42.11%
Values	Daily Returns

Xtant Medical Holdings  vs.  Bukit Jalil Global

Xtant Medical Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xtant Medical Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Bukit Jalil Global

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Bukit Jalil Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively inconsistent basic indicators, Bukit Jalil reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xtant Medical and Bukit Jalil

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

The idea behind Xtant Medical Holdings and Bukit Jalil Global 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.