Correlation Between Caldera and XMX

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

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

Diversification Opportunities for Caldera and XMX

0.0

Correlation Coefficient

Caldera  XMX

Pay attention - limited upside

The 3 months correlation between Caldera and XMX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caldera and XMX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XMX and Caldera 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 Caldera are associated (or correlated) with XMX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XMX has no effect on the direction of Caldera i.e., Caldera and XMX go up and down completely randomly.

Pair Corralation between Caldera and XMX

If you would invest  0.00  in XMX on July 23, 2025 and sell it today you would earn a total of  0.00  from holding XMX or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Caldera  vs.  XMX

Caldera

Risk-Adjusted Performance

Weakest

Over the last 90 days Caldera has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for Caldera shareholders.

XMX

Risk-Adjusted Performance

Weakest

Over the last 90 days XMX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, XMX is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Caldera and XMX

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

The idea behind Caldera and XMX 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.