Correlation Between AUREA SA and XTANT MEDICAL

Can any of the company-specific risk be diversified away by investing in both AUREA SA and XTANT 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 AUREA SA and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AUREA SA INH and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on AUREA SA and XTANT 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 AUREA SA with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUREA SA and XTANT MEDICAL.

Diversification Opportunities for AUREA SA and XTANT MEDICAL

0.57

Correlation Coefficient

AUREA SA  XTANT MEDICAL

Very weak diversification

The 3 months correlation between AUREA and XTANT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding AUREA SA INH and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS and AUREA SA 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 AUREA SA INH are associated (or correlated) with XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of AUREA SA i.e., AUREA SA and XTANT MEDICAL go up and down completely randomly.

Pair Corralation between AUREA SA and XTANT MEDICAL

Assuming the 90 days horizon AUREA SA is expected to generate 2.69 times less return on investment than XTANT MEDICAL. But when comparing it to its historical volatility, AUREA SA INH is 2.48 times less risky than XTANT MEDICAL. It trades about 0.1 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  41.00  in XTANT MEDICAL HLDGS on April 23, 2025 and sell it today you would earn a total of  12.00  from holding XTANT MEDICAL HLDGS or generate 29.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

AUREA SA INH  vs.  XTANT MEDICAL HLDGS

AUREA SA INH

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AUREA SA INH are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, AUREA SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

XTANT MEDICAL HLDGS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in XTANT MEDICAL HLDGS are ranked lower than 8 (%) 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.

Pair Trading with AUREA SA and XTANT MEDICAL

The main advantage of trading using opposite AUREA SA and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUREA SA position performs unexpectedly, XTANT 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.

The idea behind AUREA SA INH and XTANT MEDICAL HLDGS 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.

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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.