Correlation Between X Financial and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both X Financial and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on X Financial and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Financial and SSgA SPDR.
Diversification Opportunities for X Financial and SSgA SPDR
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XYF and SSgA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding X Financial Class and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of X Financial i.e., X Financial and SSgA SPDR go up and down completely randomly.
Pair Corralation between X Financial and SSgA SPDR
Considering the 90-day investment horizon X Financial Class is expected to generate 9.01 times more return on investment than SSgA SPDR. However, X Financial is 9.01 times more volatile than SSgA SPDR ETFs. It trades about 0.11 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.06 per unit of risk. If you would invest 346.00 in X Financial Class on October 5, 2024 and sell it today you would earn a total of 495.00 from holding X Financial Class or generate 143.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
X Financial Class vs. SSgA SPDR ETFs
Performance |
Timeline |
X Financial Class |
SSgA SPDR ETFs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
X Financial and SSgA SPDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with X Financial and SSgA SPDR
The main advantage of trading using opposite X Financial and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Financial position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.X Financial vs. LM Funding America | X Financial vs. Nisun International Enterprise | X Financial vs. Qudian Inc | X Financial vs. FinVolution Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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