Correlation Between XTI Aerospace, and Fubotv

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

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

Diversification Opportunities for XTI Aerospace, and Fubotv

-0.36

Correlation Coefficient

XTI Aerospace,  Fubotv

Very good diversification

The 3 months correlation between XTI and Fubotv is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding XTI Aerospace, and Fubotv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubotv Inc and XTI Aerospace, 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 XTI Aerospace, are associated (or correlated) with Fubotv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubotv Inc has no effect on the direction of XTI Aerospace, i.e., XTI Aerospace, and Fubotv go up and down completely randomly.

Pair Corralation between XTI Aerospace, and Fubotv

Given the investment horizon of 90 days XTI Aerospace, is expected to under-perform the Fubotv. In addition to that, XTI Aerospace, is 1.76 times more volatile than Fubotv Inc. It trades about -0.15 of its total potential returns per unit of risk. Fubotv Inc is currently generating about -0.02 per unit of volatility. If you would invest  251.00  in Fubotv Inc on July 6, 2024 and sell it today you would lose (106.00) from holding Fubotv Inc or give up 42.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

XTI Aerospace,  vs.  Fubotv Inc

XTI Aerospace,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XTI Aerospace, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in November 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Fubotv Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fubotv Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental drivers, Fubotv displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with XTI Aerospace, and Fubotv

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

The idea behind XTI Aerospace, and Fubotv Inc 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.