Correlation Between Clinical Laserthermia and Xbrane Biopharma
Can any of the company-specific risk be diversified away by investing in both Clinical Laserthermia 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 Clinical Laserthermia and Xbrane Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clinical Laserthermia Systems and Xbrane Biopharma AB, you can compare the effects of market volatilities on Clinical Laserthermia 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 Clinical Laserthermia with a short position of Xbrane Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clinical Laserthermia and Xbrane Biopharma.
Diversification Opportunities for Clinical Laserthermia and Xbrane Biopharma
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clinical and Xbrane is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Clinical Laserthermia Systems and Xbrane Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xbrane Biopharma and Clinical Laserthermia 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 Clinical Laserthermia Systems 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 Clinical Laserthermia i.e., Clinical Laserthermia and Xbrane Biopharma go up and down completely randomly.
Pair Corralation between Clinical Laserthermia and Xbrane Biopharma
Assuming the 90 days trading horizon Clinical Laserthermia Systems is expected to generate 0.68 times more return on investment than Xbrane Biopharma. However, Clinical Laserthermia Systems is 1.47 times less risky than Xbrane Biopharma. It trades about 0.05 of its potential returns per unit of risk. Xbrane Biopharma AB is currently generating about -0.21 per unit of risk. If you would invest 288.00 in Clinical Laserthermia Systems on January 22, 2025 and sell it today you would earn a total of 7.00 from holding Clinical Laserthermia Systems or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clinical Laserthermia Systems vs. Xbrane Biopharma AB
Performance |
| Timeline |
| Clinical Laserthermia |
| Xbrane Biopharma |
Clinical Laserthermia and Xbrane Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clinical Laserthermia and Xbrane Biopharma
The main advantage of trading using opposite Clinical Laserthermia and Xbrane Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clinical Laserthermia 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.| Clinical Laserthermia vs. Cantargia AB | Clinical Laserthermia vs. Episurf Medical AB | Clinical Laserthermia vs. Karolinska Development AB | Clinical Laserthermia vs. Acarix AS |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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