Correlation Between Benitec Biopharma and XTL Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Benitec Biopharma and XTL Biopharmaceutica 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 XTL Biopharmaceutica 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 XTL Biopharmaceuticals Ltd, you can compare the effects of market volatilities on Benitec Biopharma and XTL Biopharmaceutica 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 XTL Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benitec Biopharma and XTL Biopharmaceutica.
Diversification Opportunities for Benitec Biopharma and XTL Biopharmaceutica
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benitec and XTL is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Benitec Biopharma Ltd and XTL Biopharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals 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 XTL Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTL Biopharmaceuticals has no effect on the direction of Benitec Biopharma i.e., Benitec Biopharma and XTL Biopharmaceutica go up and down completely randomly.
Pair Corralation between Benitec Biopharma and XTL Biopharmaceutica
Given the investment horizon of 90 days Benitec Biopharma Ltd is expected to generate 0.66 times more return on investment than XTL Biopharmaceutica. However, Benitec Biopharma Ltd is 1.52 times less risky than XTL Biopharmaceutica. It trades about 0.05 of its potential returns per unit of risk. XTL Biopharmaceuticals Ltd is currently generating about -0.03 per unit of risk. If you would invest 919.00 in Benitec Biopharma Ltd on August 30, 2024 and sell it today you would earn a total of 54.00 from holding Benitec Biopharma Ltd or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Benitec Biopharma Ltd vs. XTL Biopharmaceuticals Ltd
Performance |
| Timeline |
| Benitec Biopharma |
| XTL Biopharmaceuticals |
Benitec Biopharma and XTL Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benitec Biopharma and XTL Biopharmaceutica
The main advantage of trading using opposite Benitec Biopharma and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benitec Biopharma position performs unexpectedly, XTL Biopharmaceutica 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 XTL Biopharmaceutica will offset losses from the drop in XTL Biopharmaceutica's long position.| Benitec Biopharma vs. Bio Path Holdings | Benitec Biopharma vs. Capricor Therapeutics | Benitec Biopharma vs. NextCure | Benitec Biopharma vs. Aileron Therapeutics |
| XTL Biopharmaceutica vs. Benitec Biopharma Ltd | XTL Biopharmaceutica vs. Xenetic Biosciences | XTL Biopharmaceutica vs. ProPhase Labs | XTL Biopharmaceutica vs. BOS Better Online |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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