Correlation Between XOX Technology and Duopharma Biotech
Can any of the company-specific risk be diversified away by investing in both XOX Technology and Duopharma Biotech 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 XOX Technology and Duopharma Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOX Technology Bhd and Duopharma Biotech Bhd, you can compare the effects of market volatilities on XOX Technology and Duopharma Biotech 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 XOX Technology with a short position of Duopharma Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOX Technology and Duopharma Biotech.
Diversification Opportunities for XOX Technology and Duopharma Biotech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XOX and Duopharma is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding XOX Technology Bhd and Duopharma Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duopharma Biotech Bhd and XOX Technology 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 XOX Technology Bhd are associated (or correlated) with Duopharma Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duopharma Biotech Bhd has no effect on the direction of XOX Technology i.e., XOX Technology and Duopharma Biotech go up and down completely randomly.
Pair Corralation between XOX Technology and Duopharma Biotech
Assuming the 90 days trading horizon XOX Technology Bhd is expected to under-perform the Duopharma Biotech. In addition to that, XOX Technology is 4.43 times more volatile than Duopharma Biotech Bhd. It trades about -0.08 of its total potential returns per unit of risk. Duopharma Biotech Bhd is currently generating about -0.2 per unit of volatility. If you would invest 126.00 in Duopharma Biotech Bhd on October 20, 2024 and sell it today you would lose (5.00) from holding Duopharma Biotech Bhd or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XOX Technology Bhd vs. Duopharma Biotech Bhd
Performance |
| Timeline |
| XOX Technology Bhd |
| Duopharma Biotech Bhd |
XOX Technology and Duopharma Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOX Technology and Duopharma Biotech
The main advantage of trading using opposite XOX Technology and Duopharma Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOX Technology position performs unexpectedly, Duopharma Biotech 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 Duopharma Biotech will offset losses from the drop in Duopharma Biotech's long position.| XOX Technology vs. Dagang Nexchange Bhd | XOX Technology vs. Datasonic Group Bhd | XOX Technology vs. Awanbiru Technology Bhd | XOX Technology vs. Dataprep Holdings Bhd |
| Duopharma Biotech vs. Eonmetall Group Bhd | Duopharma Biotech vs. Uchi Technologies Bhd | Duopharma Biotech vs. Ho Hup Construction | Duopharma Biotech vs. YX Precious Metals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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