Correlation Between Xtant Medical and 665859AX2

Can any of the company-specific risk be diversified away by investing in both Xtant Medical and 665859AX2 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 665859AX2 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 NTRS 6125 02 NOV 32, you can compare the effects of market volatilities on Xtant Medical and 665859AX2 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 665859AX2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and 665859AX2.

Diversification Opportunities for Xtant Medical and 665859AX2

0.57

Correlation Coefficient

Xtant Medical  665859AX2

Very weak diversification

The 3 months correlation between Xtant and 665859AX2 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and NTRS 6125 02 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTRS 6125 02 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 665859AX2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTRS 6125 02 has no effect on the direction of Xtant Medical i.e., Xtant Medical and 665859AX2 go up and down completely randomly.

Pair Corralation between Xtant Medical and 665859AX2

Given the investment horizon of 90 days Xtant Medical Holdings is expected to under-perform the 665859AX2. In addition to that, Xtant Medical is 5.29 times more volatile than NTRS 6125 02 NOV 32. It trades about -0.15 of its total potential returns per unit of risk. NTRS 6125 02 NOV 32 is currently generating about -0.18 per unit of volatility. If you would invest  11,029  in NTRS 6125 02 NOV 32 on October 3, 2024 and sell it today you would lose (781.00) from holding NTRS 6125 02 NOV 32 or give up 7.08% of portfolio value over 90 days.

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

Xtant Medical Holdings  vs.  NTRS 6125 02 NOV 32

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 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.

NTRS 6125 02

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NTRS 6125 02 NOV 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NTRS 6125 02 NOV 32 investors.

Pair Trading with Xtant Medical and 665859AX2

The main advantage of trading using opposite Xtant Medical and 665859AX2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical position performs unexpectedly, 665859AX2 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 665859AX2 will offset losses from the drop in 665859AX2's long position.

The idea behind Xtant Medical Holdings and NTRS 6125 02 NOV 32 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.