Correlation Between Benitec Biopharma and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both Benitec Biopharma and Lixte Biotechnology 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 Benitec Biopharma and Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benitec Biopharma Ltd and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on Benitec Biopharma and Lixte Biotechnology 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 Benitec Biopharma with a short position of Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benitec Biopharma and Lixte Biotechnology.
Diversification Opportunities for Benitec Biopharma and Lixte Biotechnology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Benitec and Lixte is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Benitec Biopharma Ltd and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology and Benitec Biopharma 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 Benitec Biopharma Ltd are associated (or correlated) with Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of Benitec Biopharma i.e., Benitec Biopharma and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between Benitec Biopharma and Lixte Biotechnology
Given the investment horizon of 90 days Benitec Biopharma Ltd is expected to under-perform the Lixte Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Benitec Biopharma Ltd is 1.88 times less risky than Lixte Biotechnology. The stock trades about -0.07 of its potential returns per unit of risk. The Lixte Biotechnology Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Lixte Biotechnology Holdings on September 3, 2024 and sell it today you would earn a total of 28.00 from holding Lixte Biotechnology Holdings or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benitec Biopharma Ltd vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| Benitec Biopharma |
| Lixte Biotechnology |
Benitec Biopharma and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benitec Biopharma and Lixte Biotechnology
The main advantage of trading using opposite Benitec Biopharma and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benitec Biopharma position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| Benitec Biopharma vs. Bio Path Holdings | Benitec Biopharma vs. Capricor Therapeutics | Benitec Biopharma vs. NextCure | Benitec Biopharma vs. Aileron Therapeutics |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Neurobo Pharmaceuticals | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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