Correlation Between Durect and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both Durect and Xenetic Biosciences 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 Durect and Xenetic Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Durect and Xenetic Biosciences, you can compare the effects of market volatilities on Durect and Xenetic Biosciences 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 Durect with a short position of Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Durect and Xenetic Biosciences.
Diversification Opportunities for Durect and Xenetic Biosciences
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Durect and Xenetic is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Durect and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences and Durect 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 Durect are associated (or correlated) with Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of Durect i.e., Durect and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between Durect and Xenetic Biosciences
Given the investment horizon of 90 days Durect is expected to under-perform the Xenetic Biosciences. In addition to that, Durect is 2.12 times more volatile than Xenetic Biosciences. It trades about -0.15 of its total potential returns per unit of risk. Xenetic Biosciences is currently generating about -0.1 per unit of volatility. If you would invest 411.00 in Xenetic Biosciences on October 15, 2024 and sell it today you would lose (25.00) from holding Xenetic Biosciences or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Durect vs. Xenetic Biosciences
Performance |
| Timeline |
| Durect |
| Xenetic Biosciences |
Durect and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Durect and Xenetic Biosciences
The main advantage of trading using opposite Durect and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Durect position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.| Durect vs. Shuttle Pharmaceuticals | Durect vs. Organogenesis Holdings | Durect vs. Alpha Teknova | Durect vs. Sonoma Pharmaceuticals |
| Xenetic Biosciences vs. Ginkgo Bioworks Holdings | Xenetic Biosciences vs. CureVac NV | Xenetic Biosciences vs. Iovance Biotherapeutics | Xenetic Biosciences vs. Krystal Biotech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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