Correlation Between Investors Title and XPeng

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Can any of the company-specific risk be diversified away by investing in both Investors Title and XPeng 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 Investors Title and XPeng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investors Title and XPeng Inc, you can compare the effects of market volatilities on Investors Title and XPeng 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 Investors Title with a short position of XPeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investors Title and XPeng.

Diversification Opportunities for Investors Title and XPeng

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Investors and XPeng is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Investors Title and XPeng Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XPeng Inc and Investors Title 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 Investors Title are associated (or correlated) with XPeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XPeng Inc has no effect on the direction of Investors Title i.e., Investors Title and XPeng go up and down completely randomly.

Pair Corralation between Investors Title and XPeng

Given the investment horizon of 90 days Investors Title is expected to generate 0.6 times more return on investment than XPeng. However, Investors Title is 1.67 times less risky than XPeng. It trades about 0.12 of its potential returns per unit of risk. XPeng Inc is currently generating about 0.01 per unit of risk. If you would invest  24,373  in Investors Title on September 1, 2025 and sell it today you would earn a total of  3,518  from holding Investors Title or generate 14.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.46%
ValuesDaily Returns

Investors Title  vs.  XPeng Inc

 Performance 
       Timeline  
Investors Title 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Investors Title are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, Investors Title exhibited solid returns over the last few months and may actually be approaching a breakup point.
XPeng Inc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days XPeng Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, XPeng is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Investors Title and XPeng Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Investors Title and XPeng

The main advantage of trading using opposite Investors Title and XPeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investors Title position performs unexpectedly, XPeng 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 XPeng will offset losses from the drop in XPeng's long position.
The idea behind Investors Title and XPeng Inc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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