Correlation Between ReShape Lifesciences and XTI Aerospace,
Can any of the company-specific risk be diversified away by investing in both ReShape Lifesciences and XTI Aerospace, 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 ReShape Lifesciences and XTI Aerospace, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReShape Lifesciences and XTI Aerospace,, you can compare the effects of market volatilities on ReShape Lifesciences and XTI Aerospace, 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 ReShape Lifesciences with a short position of XTI Aerospace,. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReShape Lifesciences and XTI Aerospace,.
Diversification Opportunities for ReShape Lifesciences and XTI Aerospace,
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ReShape and XTI is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and XTI Aerospace, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTI Aerospace, and ReShape Lifesciences 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 ReShape Lifesciences are associated (or correlated) with XTI Aerospace,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTI Aerospace, has no effect on the direction of ReShape Lifesciences i.e., ReShape Lifesciences and XTI Aerospace, go up and down completely randomly.
Pair Corralation between ReShape Lifesciences and XTI Aerospace,
Given the investment horizon of 90 days ReShape Lifesciences is expected to generate 1.05 times more return on investment than XTI Aerospace,. However, ReShape Lifesciences is 1.05 times more volatile than XTI Aerospace,. It trades about 0.05 of its potential returns per unit of risk. XTI Aerospace, is currently generating about 0.05 per unit of risk. If you would invest 1,832 in ReShape Lifesciences on May 28, 2025 and sell it today you would lose (264.00) from holding ReShape Lifesciences or give up 14.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.32% |
| Values | Daily Returns |
ReShape Lifesciences vs. XTI Aerospace,
Performance |
| Timeline |
| ReShape Lifesciences |
Risk-Adjusted Performance
Soft
Weak | Strong |
| XTI Aerospace, |
ReShape Lifesciences and XTI Aerospace, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReShape Lifesciences and XTI Aerospace,
The main advantage of trading using opposite ReShape Lifesciences and XTI Aerospace, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences position performs unexpectedly, XTI Aerospace, 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 XTI Aerospace, will offset losses from the drop in XTI Aerospace,'s long position.| ReShape Lifesciences vs. Nuwellis | ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. NanoVibronix | ReShape Lifesciences vs. Digital Brands Group, |
| XTI Aerospace, vs. NFT Limited | XTI Aerospace, vs. Enlivex Therapeutics | XTI Aerospace, vs. Wisekey International Holding | XTI Aerospace, vs. Sphere 3D Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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