Correlation Between Xander Resources and Valaris
Can any of the company-specific risk be diversified away by investing in both Xander Resources and Valaris 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 Xander Resources and Valaris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xander Resources and Valaris, you can compare the effects of market volatilities on Xander Resources and Valaris 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 Xander Resources with a short position of Valaris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xander Resources and Valaris.
Diversification Opportunities for Xander Resources and Valaris
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xander and Valaris is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xander Resources and Valaris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valaris and Xander Resources 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 Xander Resources are associated (or correlated) with Valaris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valaris has no effect on the direction of Xander Resources i.e., Xander Resources and Valaris go up and down completely randomly.
Pair Corralation between Xander Resources and Valaris
Assuming the 90 days horizon Xander Resources is expected to generate 2.82 times more return on investment than Valaris. However, Xander Resources is 2.82 times more volatile than Valaris. It trades about 0.11 of its potential returns per unit of risk. Valaris is currently generating about 0.1 per unit of risk. If you would invest 27.00 in Xander Resources on September 9, 2025 and sell it today you would earn a total of 10.00 from holding Xander Resources or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.38% |
| Values | Daily Returns |
Xander Resources vs. Valaris
Performance |
| Timeline |
| Xander Resources |
Risk-Adjusted Performance
Fair
Weak | Strong |
| Valaris |
Xander Resources and Valaris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xander Resources and Valaris
The main advantage of trading using opposite Xander Resources and Valaris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xander Resources position performs unexpectedly, Valaris 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 Valaris will offset losses from the drop in Valaris' long position.The idea behind Xander Resources and Valaris 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.| Valaris vs. Valvoline | Valaris vs. Magnolia Oil Gas | Valaris vs. California Resources Corp | Valaris vs. Murphy Oil |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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