Correlation Between Xtant Medical and QT Imaging

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

Diversification Opportunities for Xtant Medical and QT Imaging

-0.32

Correlation Coefficient

Xtant Medical  QT Imaging

Very good diversification

The 3 months correlation between Xtant and QTI is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and QT Imaging Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QT Imaging Holdings 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 QT Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QT Imaging Holdings has no effect on the direction of Xtant Medical i.e., Xtant Medical and QT Imaging go up and down completely randomly.

Pair Corralation between Xtant Medical and QT Imaging

Given the investment horizon of 90 days Xtant Medical is expected to generate 2.33 times less return on investment than QT Imaging. But when comparing it to its historical volatility, Xtant Medical Holdings is 2.15 times less risky than QT Imaging. It trades about 0.11 of its potential returns per unit of risk. QT Imaging Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  40.00  in QT Imaging Holdings on December 18, 2024 and sell it today you would earn a total of  23.00  from holding QT Imaging Holdings or generate 57.5% return on investment over 90 days.

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

Xtant Medical Holdings  vs.  QT Imaging Holdings

Xtant Medical Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Xtant Medical Holdings are ranked lower than 8 (%) 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.

QT Imaging Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QT Imaging Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, QT Imaging demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xtant Medical and QT Imaging

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

The idea behind Xtant Medical Holdings and QT Imaging Holdings 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.