Correlation Between EZCORP and X Financial

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

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

Diversification Opportunities for EZCORP and X Financial

-0.71

Correlation Coefficient

EZCORP  X Financial

Pay attention - limited upside

The 3 months correlation between EZCORP and XYF is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding EZCORP Inc and X Financial Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Financial Class and EZCORP 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 EZCORP Inc are associated (or correlated) with X Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Financial Class has no effect on the direction of EZCORP i.e., EZCORP and X Financial go up and down completely randomly.

Pair Corralation between EZCORP and X Financial

Given the investment horizon of 90 days EZCORP Inc is expected to generate 0.54 times more return on investment than X Financial. However, EZCORP Inc is 1.85 times less risky than X Financial. It trades about 0.12 of its potential returns per unit of risk. X Financial Class is currently generating about -0.35 per unit of risk. If you would invest  1,883  in EZCORP Inc on October 9, 2025 and sell it today you would earn a total of  266.00  from holding EZCORP Inc or generate 14.13% return on investment over 90 days.

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

EZCORP Inc  vs.  X Financial Class

EZCORP Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in EZCORP Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, EZCORP showed solid returns over the last few months and may actually be approaching a breakup point.

X Financial Class

Risk-Adjusted Performance

Weakest

Over the last 90 days X Financial Class has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with EZCORP and X Financial

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

The idea behind EZCORP Inc and X Financial Class 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.