Correlation Between MESA Old and Xos

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

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

Diversification Opportunities for MESA Old and Xos

-0.68

Correlation Coefficient

MESA Old  Xos

Excellent diversification

The 3 months correlation between MESA and Xos is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding MESA Old and Xos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xos Inc and MESA Old 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 MESA Old 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 MESA Old i.e., MESA Old and Xos go up and down completely randomly.

Pair Corralation between MESA Old and Xos

Given the investment horizon of 90 days MESA Old is expected to generate 1.16 times more return on investment than Xos. However, MESA Old is 1.16 times more volatile than Xos Inc. It trades about 0.06 of its potential returns per unit of risk. Xos Inc is currently generating about -0.14 per unit of risk. If you would invest  1,973  in MESA Old on September 24, 2025 and sell it today you would earn a total of  127.00  from holding MESA Old or generate 6.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	71.43%
Values	Daily Returns

MESA Old  vs.  Xos Inc

MESA Old

Risk-Adjusted Performance

Soft

Over the last 90 days MESA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat uncertain basic indicators, MESA Old may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Xos Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Xos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with MESA Old and Xos

The main advantage of trading using opposite MESA Old and Xos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MESA Old 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.

The idea behind MESA Old and Xos 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.