Correlation Between Xpeng and Cooper Stnd

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

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

Diversification Opportunities for Xpeng and Cooper Stnd

-0.06

Correlation Coefficient

Xpeng  Cooper Stnd

Good diversification

The 3 months correlation between Xpeng and Cooper is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Xpeng Inc and Cooper Stnd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Stnd and Xpeng 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 Xpeng Inc are associated (or correlated) with Cooper Stnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Stnd has no effect on the direction of Xpeng i.e., Xpeng and Cooper Stnd go up and down completely randomly.

Pair Corralation between Xpeng and Cooper Stnd

Given the investment horizon of 90 days Xpeng Inc is expected to generate 1.09 times more return on investment than Cooper Stnd. However, Xpeng is 1.09 times more volatile than Cooper Stnd. It trades about -0.13 of its potential returns per unit of risk. Cooper Stnd is currently generating about -0.2 per unit of risk. If you would invest  828.00  in Xpeng Inc on March 21, 2024 and sell it today you would lose (80.00) from holding Xpeng Inc or give up 9.66% of portfolio value over 90 days.

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

Xpeng Inc  vs.  Cooper Stnd

Xpeng Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xpeng 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 technical and fundamental indicators remain fairly stable which may send shares a bit higher in July 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Cooper Stnd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cooper Stnd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Xpeng and Cooper Stnd

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

The idea behind Xpeng Inc and Cooper Stnd 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.