Correlation Between Xtant Medical and INGERSOLL

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

Diversification Opportunities for Xtant Medical and INGERSOLL

0.11

Correlation Coefficient

Xtant Medical  INGERSOLL

Average diversification

The 3 months correlation between Xtant and INGERSOLL is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and INGERSOLL RAND LUXEMBOURG FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INGERSOLL RAND LUXEM 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 INGERSOLL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INGERSOLL RAND LUXEM has no effect on the direction of Xtant Medical i.e., Xtant Medical and INGERSOLL go up and down completely randomly.

Pair Corralation between Xtant Medical and INGERSOLL

Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 1.7 times more return on investment than INGERSOLL. However, Xtant Medical is 1.7 times more volatile than INGERSOLL RAND LUXEMBOURG FIN. It trades about 0.01 of its potential returns per unit of risk. INGERSOLL RAND LUXEMBOURG FIN is currently generating about -0.03 per unit of risk. If you would invest  70.00  in Xtant Medical Holdings on October 23, 2024 and sell it today you would lose (18.00) from holding Xtant Medical Holdings or give up 25.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	28.14%
Values	Daily Returns

Xtant Medical Holdings  vs.  INGERSOLL RAND LUXEMBOURG FIN

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 comparatively stable basic indicators, Xtant Medical is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

INGERSOLL RAND LUXEM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INGERSOLL RAND LUXEMBOURG FIN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for INGERSOLL RAND LUXEMBOURG FIN investors.

Pair Trading with Xtant Medical and INGERSOLL

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

The idea behind Xtant Medical Holdings and INGERSOLL RAND LUXEMBOURG FIN 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.