Correlation Between Xos and Decent Holding

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

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

Diversification Opportunities for Xos and Decent Holding

-0.53

Correlation Coefficient

Xos  Decent Holding

Excellent diversification

The 3 months correlation between Xos and Decent is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xos Inc and Decent Holding Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Decent Holding Ordinary and Xos 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 Xos Inc are associated (or correlated) with Decent Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Decent Holding Ordinary has no effect on the direction of Xos i.e., Xos and Decent Holding go up and down completely randomly.

Pair Corralation between Xos and Decent Holding

Considering the 90-day investment horizon Xos Inc is expected to under-perform the Decent Holding. But the stock apears to be less risky and, when comparing its historical volatility, Xos Inc is 1.21 times less risky than Decent Holding. The stock trades about -0.06 of its potential returns per unit of risk. The Decent Holding Ordinary is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  127.00  in Decent Holding Ordinary on July 24, 2025 and sell it today you would earn a total of  4.00  from holding Decent Holding Ordinary or generate 3.15% return on investment over 90 days.

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

Xos Inc  vs.  Decent Holding Ordinary

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 November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Decent Holding Ordinary

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Decent Holding Ordinary are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Decent Holding may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Xos and Decent Holding

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

The idea behind Xos Inc and Decent Holding Ordinary 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.