Correlation Between Socket Mobile and Xerox Corp

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

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

Diversification Opportunities for Socket Mobile and Xerox Corp

-0.72

Correlation Coefficient

Socket Mobile  Xerox Corp

Pay attention - limited upside

The 3 months correlation between Socket and Xerox is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Socket Mobile and Xerox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xerox Corp and Socket Mobile 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 Socket Mobile are associated (or correlated) with Xerox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xerox Corp has no effect on the direction of Socket Mobile i.e., Socket Mobile and Xerox Corp go up and down completely randomly.

Pair Corralation between Socket Mobile and Xerox Corp

Given the investment horizon of 90 days Socket Mobile is expected to generate 0.85 times more return on investment than Xerox Corp. However, Socket Mobile is 1.17 times less risky than Xerox Corp. It trades about 0.05 of its potential returns per unit of risk. Xerox Corp is currently generating about -0.15 per unit of risk. If you would invest  106.00  in Socket Mobile on September 19, 2025 and sell it today you would earn a total of  8.00  from holding Socket Mobile or generate 7.55% return on investment over 90 days.

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

Socket Mobile  vs.  Xerox Corp

Socket Mobile

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Socket Mobile are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward-looking signals, Socket Mobile may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Xerox Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Xerox Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Socket Mobile and Xerox Corp

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

The idea behind Socket Mobile and Xerox Corp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.