Correlation Between ChineseworldnetCom and Xalles Holdings

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

By analyzing existing cross correlation between ChineseworldnetCom and Xalles Holdings, you can compare the effects of market volatilities on ChineseworldnetCom and Xalles Holdings 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 ChineseworldnetCom with a short position of Xalles Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChineseworldnetCom and Xalles Holdings.

Diversification Opportunities for ChineseworldnetCom and Xalles Holdings

0.0

Correlation Coefficient

ChineseworldnetCom  Xalles Holdings

Pay attention - limited upside

The 3 months correlation between ChineseworldnetCom and Xalles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ChineseworldnetCom and Xalles Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xalles Holdings and ChineseworldnetCom 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 ChineseworldnetCom are associated (or correlated) with Xalles Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xalles Holdings has no effect on the direction of ChineseworldnetCom i.e., ChineseworldnetCom and Xalles Holdings go up and down completely randomly.

Pair Corralation between ChineseworldnetCom and Xalles Holdings

If you would invest  0.12  in Xalles Holdings on February 3, 2024 and sell it today you would earn a total of  0.02  from holding Xalles Holdings or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ChineseworldnetCom  vs.  Xalles Holdings

ChineseworldnetCom

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChineseworldnetCom has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ChineseworldnetCom is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Xalles Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xalles Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, Xalles Holdings may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with ChineseworldnetCom and Xalles Holdings

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

The idea behind ChineseworldnetCom and Xalles Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.