Correlation Between Histogen and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both Histogen and Lixte Biotechnology 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 Histogen and Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on Histogen and Lixte Biotechnology 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 Histogen with a short position of Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Lixte Biotechnology.
Diversification Opportunities for Histogen and Lixte Biotechnology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Histogen and Lixte is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology and Histogen 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 Histogen are associated (or correlated) with Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of Histogen i.e., Histogen and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between Histogen and Lixte Biotechnology
Given the investment horizon of 90 days Histogen is expected to generate 2.06 times more return on investment than Lixte Biotechnology. However, Histogen is 2.06 times more volatile than Lixte Biotechnology Holdings. It trades about 0.03 of its potential returns per unit of risk. Lixte Biotechnology Holdings is currently generating about 0.04 per unit of risk. If you would invest 34.00 in Histogen on November 3, 2024 and sell it today you would lose (31.30) from holding Histogen or give up 92.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Histogen vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| Histogen |
| Lixte Biotechnology |
Histogen and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and Lixte Biotechnology
The main advantage of trading using opposite Histogen and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| Histogen vs. Virax Biolabs Group | Histogen vs. Artelo Biosciences | Histogen vs. Curis Inc | Histogen vs. SAB Biotherapeutics |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd | Lixte Biotechnology vs. Indaptus Therapeutics |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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