Correlation Between American Premium and Xos
Can any of the company-specific risk be diversified away by investing in both American Premium and Xos 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 American Premium and Xos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Premium Water and Xos Inc, you can compare the effects of market volatilities on American Premium and Xos 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 American Premium with a short position of Xos. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Premium and Xos.
Diversification Opportunities for American Premium and Xos
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Xos is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding American Premium Water and Xos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xos Inc and American Premium 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 American Premium Water are associated (or correlated) with Xos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xos Inc has no effect on the direction of American Premium i.e., American Premium and Xos go up and down completely randomly.
Pair Corralation between American Premium and Xos
Given the investment horizon of 90 days American Premium Water is expected to generate 21.14 times more return on investment than Xos. However, American Premium is 21.14 times more volatile than Xos Inc. It trades about 0.11 of its potential returns per unit of risk. Xos Inc is currently generating about 0.04 per unit of risk. If you would invest 0.00 in American Premium Water on February 20, 2024 and sell it today you would earn a total of 0.00 from holding American Premium Water or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
American Premium Water vs. Xos Inc
Performance |
Timeline |
American Premium Water |
Xos Inc |
American Premium and Xos Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Premium and Xos
The main advantage of trading using opposite American Premium and Xos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Premium position performs unexpectedly, Xos 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 Xos will offset losses from the drop in Xos' long position.American Premium vs. GiveMePower Corp | American Premium vs. Vortex Brands Co | American Premium vs. Cal Bay Intl | American Premium vs. First BITCoin Capital |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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