Correlation Between Aprogen Healthcare and Xavis Co

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

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

Diversification Opportunities for Aprogen Healthcare and Xavis Co

0.13

Correlation Coefficient

Aprogen Healthcare  Xavis Co

Average diversification

The 3 months correlation between Aprogen and Xavis is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Xavis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xavis Co and Aprogen Healthcare 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 Aprogen Healthcare Games are associated (or correlated) with Xavis Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xavis Co has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Xavis Co go up and down completely randomly.

Pair Corralation between Aprogen Healthcare and Xavis Co

Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Xavis Co. But the stock apears to be less risky and, when comparing its historical volatility, Aprogen Healthcare Games is 1.08 times less risky than Xavis Co. The stock trades about -0.06 of its potential returns per unit of risk. The Xavis Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  200,278  in Xavis Co on February 5, 2024 and sell it today you would earn a total of  23,722  from holding Xavis Co or generate 11.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.13%
Values	Daily Returns

Aprogen Healthcare Games  vs.  Xavis Co

Aprogen Healthcare Games

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aprogen Healthcare Games are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Aprogen Healthcare may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Xavis Co

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xavis Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Xavis Co is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aprogen Healthcare and Xavis Co

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

The idea behind Aprogen Healthcare Games and Xavis Co 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.