Correlation Between Emmaus Life and XOMA
Can any of the company-specific risk be diversified away by investing in both Emmaus Life and XOMA 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 Emmaus Life and XOMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emmaus Life Sciences and XOMA Corporation, you can compare the effects of market volatilities on Emmaus Life and XOMA 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 Emmaus Life with a short position of XOMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmaus Life and XOMA.
Diversification Opportunities for Emmaus Life and XOMA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emmaus and XOMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Emmaus Life Sciences and XOMA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XOMA and Emmaus Life 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 Emmaus Life Sciences are associated (or correlated) with XOMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XOMA has no effect on the direction of Emmaus Life i.e., Emmaus Life and XOMA go up and down completely randomly.
Pair Corralation between Emmaus Life and XOMA
If you would invest 2,210 in XOMA Corporation on November 9, 2024 and sell it today you would earn a total of 330.00 from holding XOMA Corporation or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Emmaus Life Sciences vs. XOMA Corp.
Performance |
| Timeline |
| Emmaus Life Sciences |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| XOMA |
Emmaus Life and XOMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmaus Life and XOMA
The main advantage of trading using opposite Emmaus Life and XOMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmaus Life position performs unexpectedly, XOMA 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 XOMA will offset losses from the drop in XOMA's long position.| Emmaus Life vs. NRx Pharmaceuticals | Emmaus Life vs. Cell Source | Emmaus Life vs. Anebulo Pharmaceuticals | Emmaus Life vs. Adagene |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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