Correlation Between Almacenes Xito and CLPS

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

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

Diversification Opportunities for Almacenes Xito and CLPS

0.3

Correlation Coefficient

Almacenes Xito  CLPS

Weak diversification

The 3 months correlation between Almacenes and CLPS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Almacenes Xito SA and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc and Almacenes Xito 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 Almacenes Xito SA are associated (or correlated) with CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of Almacenes Xito i.e., Almacenes Xito and CLPS go up and down completely randomly.

Pair Corralation between Almacenes Xito and CLPS

If you would invest (100.00) in Almacenes Xito SA on May 17, 2025 and sell it today you would earn a total of  100.00  from holding Almacenes Xito SA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Almacenes Xito SA  vs.  CLPS Inc

Almacenes Xito SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Almacenes Xito SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Almacenes Xito is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

CLPS Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Almacenes Xito and CLPS

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

The idea behind Almacenes Xito SA and CLPS 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.