Correlation Between Xiabuxiabu Catering and Appian Corp

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

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

Diversification Opportunities for Xiabuxiabu Catering and Appian Corp

0.0

Correlation Coefficient

Xiabuxiabu Catering  Appian Corp

Pay attention - limited upside

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

Pair Corralation between Xiabuxiabu Catering and Appian Corp

Assuming the 90 days horizon Xiabuxiabu Catering Management is expected to generate 0.04 times more return on investment than Appian Corp. However, Xiabuxiabu Catering Management is 25.98 times less risky than Appian Corp. It trades about 0.08 of its potential returns per unit of risk. Appian Corp is currently generating about 0.0 per unit of risk. If you would invest  221.00  in Xiabuxiabu Catering Management on January 20, 2024 and sell it today you would earn a total of  7.00  from holding Xiabuxiabu Catering Management or generate 3.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	58.74%
Values	Daily Returns

Xiabuxiabu Catering Management  vs.  Appian Corp

Xiabuxiabu Catering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Xiabuxiabu Catering is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Appian Corp

Risk-Adjusted Performance

2 of 100

Weak

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

Pair Trading with Xiabuxiabu Catering and Appian Corp

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

The idea behind Xiabuxiabu Catering Management and Appian 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.