Correlation Between X Financial and Victoria Care
Can any of the company-specific risk be diversified away by investing in both X Financial and Victoria Care 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 Victoria Care 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 Victoria Care Indonesia, you can compare the effects of market volatilities on X Financial and Victoria Care 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 Victoria Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Financial and Victoria Care.
Diversification Opportunities for X Financial and Victoria Care
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XYF and Victoria is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding X Financial Class and Victoria Care Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victoria Care Indonesia 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 Victoria Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victoria Care Indonesia has no effect on the direction of X Financial i.e., X Financial and Victoria Care go up and down completely randomly.
Pair Corralation between X Financial and Victoria Care
Considering the 90-day investment horizon X Financial Class is expected to generate 3.64 times more return on investment than Victoria Care. However, X Financial is 3.64 times more volatile than Victoria Care Indonesia. It trades about 0.19 of its potential returns per unit of risk. Victoria Care Indonesia is currently generating about 0.21 per unit of risk. If you would invest 730.00 in X Financial Class on October 6, 2024 and sell it today you would earn a total of 118.00 from holding X Financial Class or generate 16.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
X Financial Class vs. Victoria Care Indonesia
Performance |
Timeline |
X Financial Class |
Victoria Care Indonesia |
X Financial and Victoria Care Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with X Financial and Victoria Care
The main advantage of trading using opposite X Financial and Victoria Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Financial position performs unexpectedly, Victoria Care 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 Victoria Care will offset losses from the drop in Victoria Care'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 |
Victoria Care vs. Garudafood Putra Putri | Victoria Care vs. Uni Charm Indonesia | Victoria Care vs. Provident Agro Tbk | Victoria Care vs. Kino Indonesia Tbk |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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