Correlation Between Select Sands and Xmet

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

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

Diversification Opportunities for Select Sands and Xmet

0.0

Correlation Coefficient

Select Sands  Xmet

Pay attention - limited upside

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

Pair Corralation between Select Sands and Xmet

If you would invest  0.16  in Xmet Inc on September 12, 2025 and sell it today you would earn a total of  0.00  from holding Xmet Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Select Sands Corp  vs.  Xmet Inc

Select Sands Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Select Sands Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Select Sands is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Xmet Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Xmet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Xmet is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Select Sands and Xmet

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

The idea behind Select Sands Corp and Xmet Inc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.