Correlation Between Xos and AGCO
Can any of the company-specific risk be diversified away by investing in both Xos and AGCO 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 AGCO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xos Inc and AGCO Corporation, you can compare the effects of market volatilities on Xos and AGCO 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 AGCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xos and AGCO.
Diversification Opportunities for Xos and AGCO
Good diversification
The 3 months correlation between Xos and AGCO is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xos Inc and AGCO Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGCO 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 AGCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGCO has no effect on the direction of Xos i.e., Xos and AGCO go up and down completely randomly.
Pair Corralation between Xos and AGCO
Considering the 90-day investment horizon Xos Inc is expected to generate 3.93 times more return on investment than AGCO. However, Xos is 3.93 times more volatile than AGCO Corporation. It trades about 0.02 of its potential returns per unit of risk. AGCO Corporation is currently generating about 0.0 per unit of risk. If you would invest 795.00 in Xos Inc on January 20, 2024 and sell it today you would lose (10.00) from holding Xos Inc or give up 1.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xos Inc vs. AGCO Corp.
Performance |
Timeline |
Xos Inc |
AGCO |
Xos and AGCO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xos and AGCO
The main advantage of trading using opposite Xos and AGCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xos position performs unexpectedly, AGCO 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 AGCO will offset losses from the drop in AGCO's long position.Xos vs. CEA Industries | Xos vs. Thayer Ventures Acquisition | Xos vs. Iveda Solutions Warrant | Xos vs. Aquagold International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |