Correlation Between Xpel and TOP Ships
Can any of the company-specific risk be diversified away by investing in both Xpel and TOP Ships 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 Xpel and TOP Ships into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xpel Inc and TOP Ships, you can compare the effects of market volatilities on Xpel and TOP Ships 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 Xpel with a short position of TOP Ships. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xpel and TOP Ships.
Diversification Opportunities for Xpel and TOP Ships
Excellent diversification
The 3 months correlation between Xpel and TOP is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xpel Inc and TOP Ships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOP Ships and Xpel 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 Xpel Inc are associated (or correlated) with TOP Ships. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOP Ships has no effect on the direction of Xpel i.e., Xpel and TOP Ships go up and down completely randomly.
Pair Corralation between Xpel and TOP Ships
Given the investment horizon of 90 days Xpel Inc is expected to generate 0.86 times more return on investment than TOP Ships. However, Xpel Inc is 1.16 times less risky than TOP Ships. It trades about 0.34 of its potential returns per unit of risk. TOP Ships is currently generating about -0.12 per unit of risk. If you would invest 3,356 in Xpel Inc on October 5, 2025 and sell it today you would earn a total of 1,668 from holding Xpel Inc or generate 49.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xpel Inc vs. TOP Ships
Performance |
| Timeline |
| Xpel Inc |
| TOP Ships |
Xpel and TOP Ships Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xpel and TOP Ships
The main advantage of trading using opposite Xpel and TOP Ships positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xpel position performs unexpectedly, TOP Ships 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 TOP Ships will offset losses from the drop in TOP Ships' long position.| Xpel vs. Fox Factory Holding | Xpel vs. Standard Motor Products | Xpel vs. Aeva Technologies Common | Xpel vs. American Axle Manufacturing |
| TOP Ships vs. Performance Shipping | TOP Ships vs. Pyxis Tankers | TOP Ships vs. Vantage Corp | TOP Ships vs. Intercont Limited Ordinary |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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