Correlation Between Xtant Medical and Rambler Metals

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

Diversification Opportunities for Xtant Medical and Rambler Metals

0.0

Correlation Coefficient

Xtant Medical  Rambler Metals

Pay attention - limited upside

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

Pair Corralation between Xtant Medical and Rambler Metals

If you would invest  36.00  in Xtant Medical Holdings on December 20, 2024 and sell it today you would earn a total of  10.00  from holding Xtant Medical Holdings or generate 27.78% return on investment over 90 days.

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

Xtant Medical Holdings  vs.  Rambler Metals and

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 7 (%) 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.

Rambler Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rambler Metals and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Rambler Metals is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Xtant Medical and Rambler Metals

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

The idea behind Xtant Medical Holdings and Rambler Metals and 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.