Correlation Between Cantargia and Xbrane Biopharma
Can any of the company-specific risk be diversified away by investing in both Cantargia 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 Cantargia and Xbrane Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Xbrane Biopharma AB, you can compare the effects of market volatilities on Cantargia 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 Cantargia with a short position of Xbrane Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Xbrane Biopharma.
Diversification Opportunities for Cantargia and Xbrane Biopharma
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantargia and Xbrane is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia 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 Cantargia 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 Cantargia 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 Cantargia i.e., Cantargia and Xbrane Biopharma go up and down completely randomly.
Pair Corralation between Cantargia and Xbrane Biopharma
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Xbrane Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Cantargia AB is 1.3 times less risky than Xbrane Biopharma. The stock trades about -0.14 of its potential returns per unit of risk. The Xbrane Biopharma AB is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Xbrane Biopharma AB on August 31, 2024 and sell it today you would lose (17.00) from holding Xbrane Biopharma AB or give up 47.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Xbrane Biopharma AB
Performance |
| Timeline |
| Cantargia AB |
| Xbrane Biopharma |
Cantargia and Xbrane Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Xbrane Biopharma
The main advantage of trading using opposite Cantargia and Xbrane Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia 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.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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