Correlation Between Xtant Medical and BRP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Xtant Medical and BRP 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 BRP 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 BRP Inc, you can compare the effects of market volatilities on Xtant Medical and BRP 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 BRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and BRP.

Diversification Opportunities for Xtant Medical and BRP

0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between Xtant and BRP is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and BRP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRP Inc 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 BRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRP Inc has no effect on the direction of Xtant Medical i.e., Xtant Medical and BRP go up and down completely randomly.

Pair Corralation between Xtant Medical and BRP

Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 2.15 times more return on investment than BRP. However, Xtant Medical is 2.15 times more volatile than BRP Inc. It trades about 0.01 of its potential returns per unit of risk. BRP Inc is currently generating about -0.03 per unit of risk. If you would invest  66.00  in Xtant Medical Holdings on October 4, 2024 and sell it today you would lose (22.00) from holding Xtant Medical Holdings or give up 33.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Xtant Medical Holdings  vs.  BRP Inc

 Performance 
       Timeline  
Xtant Medical Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
BRP Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BRP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Xtant Medical and BRP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xtant Medical and BRP

The main advantage of trading using opposite Xtant Medical and BRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical position performs unexpectedly, BRP 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 BRP will offset losses from the drop in BRP's long position.
The idea behind Xtant Medical Holdings and BRP Inc 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 Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk