Correlation Between XTANT MEDICAL and Spirent Communications
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL and Spirent Communications 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 XTANT MEDICAL and Spirent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTANT MEDICAL HLDGS and Spirent Communications plc, you can compare the effects of market volatilities on XTANT MEDICAL and Spirent Communications 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 XTANT MEDICAL with a short position of Spirent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and Spirent Communications.
Diversification Opportunities for XTANT MEDICAL and Spirent Communications
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XTANT and Spirent is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and Spirent Communications plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirent Communications and XTANT MEDICAL 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 XTANT MEDICAL HLDGS are associated (or correlated) with Spirent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirent Communications has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and Spirent Communications go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and Spirent Communications
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to generate 1.9 times more return on investment than Spirent Communications. However, XTANT MEDICAL is 1.9 times more volatile than Spirent Communications plc. It trades about 0.11 of its potential returns per unit of risk. Spirent Communications plc is currently generating about 0.06 per unit of risk. 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
XTANT MEDICAL HLDGS vs. Spirent Communications plc
Performance |
Timeline |
XTANT MEDICAL HLDGS |
Spirent Communications |
XTANT MEDICAL and Spirent Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XTANT MEDICAL and Spirent Communications
The main advantage of trading using opposite XTANT MEDICAL and Spirent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL position performs unexpectedly, Spirent Communications 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 Spirent Communications will offset losses from the drop in Spirent Communications' long position.XTANT MEDICAL vs. TRI CHEMICAL LABORATINC | XTANT MEDICAL vs. SHELF DRILLING LTD | XTANT MEDICAL vs. Strong Petrochemical Holdings | XTANT MEDICAL vs. X FAB Silicon Foundries |
Spirent Communications vs. T Mobile | Spirent Communications vs. Verizon Communications | Spirent Communications vs. ATT Inc | Spirent Communications vs. Deutsche Telekom AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |