Correlation Between XTANT MEDICAL and GLOBUS MEDICAL

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

Diversification Opportunities for XTANT MEDICAL and GLOBUS MEDICAL

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between XTANT and GLOBUS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A and XTANT MEDICAL 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 XTANT MEDICAL HLDGS are associated (or correlated) with GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and GLOBUS MEDICAL go up and down completely randomly.

Pair Corralation between XTANT MEDICAL and GLOBUS MEDICAL

Assuming the 90 days horizon XTANT MEDICAL is expected to generate 2.5 times less return on investment than GLOBUS MEDICAL. In addition to that, XTANT MEDICAL is 1.05 times more volatile than GLOBUS MEDICAL A. It trades about 0.06 of its total potential returns per unit of risk. GLOBUS MEDICAL A is currently generating about 0.15 per unit of volatility. If you would invest  5,200  in GLOBUS MEDICAL A on August 21, 2025 and sell it today you would earn a total of  1,900  from holding GLOBUS MEDICAL A or generate 36.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

XTANT MEDICAL HLDGS  vs.  GLOBUS MEDICAL A

 Performance 
       Timeline  
XTANT MEDICAL HLDGS 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in XTANT MEDICAL HLDGS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, XTANT MEDICAL reported solid returns over the last few months and may actually be approaching a breakup point.
GLOBUS MEDICAL A 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GLOBUS MEDICAL A are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, GLOBUS MEDICAL exhibited solid returns over the last few months and may actually be approaching a breakup point.

XTANT MEDICAL and GLOBUS MEDICAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with XTANT MEDICAL and GLOBUS MEDICAL

The main advantage of trading using opposite XTANT MEDICAL and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, GLOBUS MEDICAL 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.
The idea behind XTANT MEDICAL HLDGS and GLOBUS MEDICAL A 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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