Correlation Between BioInvent International and Xbrane Biopharma
Can any of the company-specific risk be diversified away by investing in both BioInvent International and Xbrane Biopharma 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 BioInvent International and Xbrane Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioInvent International AB and Xbrane Biopharma AB, you can compare the effects of market volatilities on BioInvent International and Xbrane Biopharma 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 BioInvent International with a short position of Xbrane Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioInvent International and Xbrane Biopharma.
Diversification Opportunities for BioInvent International and Xbrane Biopharma
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioInvent and Xbrane is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International AB and Xbrane Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xbrane Biopharma and BioInvent International 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 BioInvent International AB are associated (or correlated) with Xbrane Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xbrane Biopharma has no effect on the direction of BioInvent International i.e., BioInvent International and Xbrane Biopharma go up and down completely randomly.
Pair Corralation between BioInvent International and Xbrane Biopharma
Assuming the 90 days trading horizon BioInvent International AB is expected to generate 0.64 times more return on investment than Xbrane Biopharma. However, BioInvent International AB is 1.56 times less risky than Xbrane Biopharma. It trades about 0.06 of its potential returns per unit of risk. Xbrane Biopharma AB is currently generating about -0.05 per unit of risk. If you would invest 3,545 in BioInvent International AB on August 31, 2024 and sell it today you would earn a total of 755.00 from holding BioInvent International AB or generate 21.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioInvent International AB vs. Xbrane Biopharma AB
Performance |
| Timeline |
| BioInvent International |
| Xbrane Biopharma |
BioInvent International and Xbrane Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioInvent International and Xbrane Biopharma
The main advantage of trading using opposite BioInvent International and Xbrane Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioInvent International position performs unexpectedly, Xbrane Biopharma 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 Xbrane Biopharma will offset losses from the drop in Xbrane Biopharma's long position.| BioInvent International vs. Hansa Biopharma AB | BioInvent International vs. Saniona AB | BioInvent International vs. Active Biotech AB | BioInvent International vs. Oncopeptides AB |
| Xbrane Biopharma vs. Hansa Biopharma AB | Xbrane Biopharma vs. Vicore Pharma Holding | Xbrane Biopharma vs. XSpray Pharma AB | Xbrane Biopharma vs. Saniona AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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