Correlation Between Xtera Communications and POSCO Holdings
Can any of the company-specific risk be diversified away by investing in both Xtera Communications and POSCO Holdings 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 Xtera Communications and POSCO Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtera Communications and POSCO Holdings, you can compare the effects of market volatilities on Xtera Communications and POSCO Holdings 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 Xtera Communications with a short position of POSCO Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtera Communications and POSCO Holdings.
Diversification Opportunities for Xtera Communications and POSCO Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtera and POSCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtera Communications and POSCO Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSCO Holdings and Xtera Communications 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 Xtera Communications are associated (or correlated) with POSCO Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSCO Holdings has no effect on the direction of Xtera Communications i.e., Xtera Communications and POSCO Holdings go up and down completely randomly.
Pair Corralation between Xtera Communications and POSCO Holdings
If you would invest 5,175 in POSCO Holdings on September 4, 2025 and sell it today you would earn a total of 138.00 from holding POSCO Holdings or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtera Communications vs. POSCO Holdings
Performance |
| Timeline |
| Xtera Communications |
| POSCO Holdings |
Xtera Communications and POSCO Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtera Communications and POSCO Holdings
The main advantage of trading using opposite Xtera Communications and POSCO Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtera Communications position performs unexpectedly, POSCO Holdings 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 POSCO Holdings will offset losses from the drop in POSCO Holdings' long position.| Xtera Communications vs. US GoldMining Common | Xtera Communications vs. Natcore Technology | Xtera Communications vs. Rexford Industrial Realty | Xtera Communications vs. Vishay Intertechnology |
| POSCO Holdings vs. Addus HomeCare | POSCO Holdings vs. Sekisui Chemical Co | POSCO Holdings vs. ICL Israel Chemicals | POSCO Holdings vs. HomeTrust Bancshares, |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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