Correlation Between X Financial and Oakhurst Fixed

Can any of the company-specific risk be diversified away by investing in both X Financial and Oakhurst Fixed 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 X Financial and Oakhurst Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between X Financial Class and Oakhurst Fixed Income, you can compare the effects of market volatilities on X Financial and Oakhurst Fixed 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 X Financial with a short position of Oakhurst Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Financial and Oakhurst Fixed.

Diversification Opportunities for X Financial and Oakhurst Fixed

0.01

Correlation Coefficient

X Financial  Oakhurst Fixed

Significant diversification

The 3 months correlation between XYF and Oakhurst is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding X Financial Class and Oakhurst Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Fixed Income and X Financial 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 X Financial Class are associated (or correlated) with Oakhurst Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Fixed Income has no effect on the direction of X Financial i.e., X Financial and Oakhurst Fixed go up and down completely randomly.

Pair Corralation between X Financial and Oakhurst Fixed

Considering the 90-day investment horizon X Financial Class is expected to generate 12.91 times more return on investment than Oakhurst Fixed. However, X Financial is 12.91 times more volatile than Oakhurst Fixed Income. It trades about 0.03 of its potential returns per unit of risk. Oakhurst Fixed Income is currently generating about -0.1 per unit of risk. If you would invest  823.00  in X Financial Class on October 5, 2024 and sell it today you would earn a total of  18.00  from holding X Financial Class or generate 2.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

X Financial Class  vs.  Oakhurst Fixed Income

X Financial Class

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in X Financial Class are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, X Financial may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Oakhurst Fixed Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oakhurst Fixed Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Oakhurst Fixed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with X Financial and Oakhurst Fixed

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

The idea behind X Financial Class and Oakhurst Fixed Income 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.