Correlation Between Xtant Medical and MYT Netherlands

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

Diversification Opportunities for Xtant Medical and MYT Netherlands

0.0

Correlation Coefficient

Xtant Medical  MYT Netherlands

Pay attention - limited upside

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

Pair Corralation between Xtant Medical and MYT Netherlands

Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 0.9 times more return on investment than MYT Netherlands. However, Xtant Medical Holdings is 1.11 times less risky than MYT Netherlands. It trades about 0.01 of its potential returns per unit of risk. MYT Netherlands Parent is currently generating about 0.01 per unit of risk. If you would invest  60.00  in Xtant Medical Holdings on October 11, 2024 and sell it today you would lose (13.00) from holding Xtant Medical Holdings or give up 21.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Xtant Medical Holdings  vs.  MYT Netherlands Parent

Xtant Medical Holdings

Risk-Adjusted Performance

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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.

MYT Netherlands Parent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MYT Netherlands Parent has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MYT Netherlands is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Xtant Medical and MYT Netherlands

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

The idea behind Xtant Medical Holdings and MYT Netherlands Parent 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.