Correlation Between Egetis Therapeutics and XSpray Pharma
Can any of the company-specific risk be diversified away by investing in both Egetis Therapeutics and XSpray Pharma 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 Egetis Therapeutics and XSpray Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egetis Therapeutics AB and XSpray Pharma AB, you can compare the effects of market volatilities on Egetis Therapeutics and XSpray Pharma 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 Egetis Therapeutics with a short position of XSpray Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egetis Therapeutics and XSpray Pharma.
Diversification Opportunities for Egetis Therapeutics and XSpray Pharma
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Egetis and XSpray is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Egetis Therapeutics AB and XSpray Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpray Pharma AB and Egetis Therapeutics 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 Egetis Therapeutics AB are associated (or correlated) with XSpray Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpray Pharma AB has no effect on the direction of Egetis Therapeutics i.e., Egetis Therapeutics and XSpray Pharma go up and down completely randomly.
Pair Corralation between Egetis Therapeutics and XSpray Pharma
Assuming the 90 days trading horizon Egetis Therapeutics AB is expected to generate 1.13 times more return on investment than XSpray Pharma. However, Egetis Therapeutics is 1.13 times more volatile than XSpray Pharma AB. It trades about 0.18 of its potential returns per unit of risk. XSpray Pharma AB is currently generating about -0.43 per unit of risk. If you would invest 459.00 in Egetis Therapeutics AB on August 25, 2024 and sell it today you would earn a total of 75.00 from holding Egetis Therapeutics AB or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egetis Therapeutics AB vs. XSpray Pharma AB
Performance |
| Timeline |
| Egetis Therapeutics |
| XSpray Pharma AB |
Egetis Therapeutics and XSpray Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egetis Therapeutics and XSpray Pharma
The main advantage of trading using opposite Egetis Therapeutics and XSpray Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egetis Therapeutics position performs unexpectedly, XSpray Pharma 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 XSpray Pharma will offset losses from the drop in XSpray Pharma's long position.| Egetis Therapeutics vs. Bavarian Nordic | Egetis Therapeutics vs. BioPorto | Egetis Therapeutics vs. Zaptec AS | Egetis Therapeutics vs. cBrain AS |
| XSpray Pharma vs. Xbrane Biopharma AB | XSpray Pharma vs. Hansa Biopharma AB | XSpray Pharma vs. Cantargia AB | XSpray Pharma vs. Vicore Pharma Holding |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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