Correlation Between ARB IOT and XIAO I
Can any of the company-specific risk be diversified away by investing in both ARB IOT and XIAO I 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 ARB IOT and XIAO I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARB IOT Group and XIAO I American, you can compare the effects of market volatilities on ARB IOT and XIAO I 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 ARB IOT with a short position of XIAO I. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARB IOT and XIAO I.
Diversification Opportunities for ARB IOT and XIAO I
Weak diversification
The 3 months correlation between ARB and XIAO is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ARB IOT Group and XIAO I American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XIAO I American and ARB IOT 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 ARB IOT Group are associated (or correlated) with XIAO I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XIAO I American has no effect on the direction of ARB IOT i.e., ARB IOT and XIAO I go up and down completely randomly.
Pair Corralation between ARB IOT and XIAO I
Given the investment horizon of 90 days ARB IOT Group is expected to generate 1.12 times more return on investment than XIAO I. However, ARB IOT is 1.12 times more volatile than XIAO I American. It trades about -0.01 of its potential returns per unit of risk. XIAO I American is currently generating about -0.19 per unit of risk. If you would invest 740.00 in ARB IOT Group on October 6, 2025 and sell it today you would lose (163.00) from holding ARB IOT Group or give up 22.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARB IOT Group vs. XIAO I American
Performance |
| Timeline |
| ARB IOT Group |
| XIAO I American |
ARB IOT and XIAO I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARB IOT and XIAO I
The main advantage of trading using opposite ARB IOT and XIAO I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARB IOT position performs unexpectedly, XIAO I 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 XIAO I will offset losses from the drop in XIAO I's long position.| ARB IOT vs. Sonim Technologies | ARB IOT vs. SmartKem Common Stock | ARB IOT vs. Blue Hat Interactive | ARB IOT vs. SOS Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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