Correlation Between Xcerra and Hello

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

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

Diversification Opportunities for Xcerra and Hello

0.0

Correlation Coefficient

Xcerra  Hello

Pay attention - limited upside

The 3 months correlation between Xcerra and Hello is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xcerra and Hello Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hello Group and Xcerra 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 Xcerra are associated (or correlated) with Hello. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hello Group has no effect on the direction of Xcerra i.e., Xcerra and Hello go up and down completely randomly.

Pair Corralation between Xcerra and Hello

If you would invest (100.00) in Xcerra on January 24, 2024 and sell it today you would earn a total of  100.00  from holding Xcerra or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Xcerra  vs.  Hello Group

Xcerra

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xcerra has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Xcerra is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Hello Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hello Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Hello may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Xcerra and Hello

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

The idea behind Xcerra and Hello Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.