Correlation Between Histogen and XOMA Corp
Can any of the company-specific risk be diversified away by investing in both Histogen and XOMA Corp 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 XOMA Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and XOMA Corp, you can compare the effects of market volatilities on Histogen and XOMA Corp 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 XOMA Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and XOMA Corp.
Diversification Opportunities for Histogen and XOMA Corp
Very good diversification
The 3 months correlation between Histogen and XOMA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and XOMA Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XOMA Corp 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 XOMA Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XOMA Corp has no effect on the direction of Histogen i.e., Histogen and XOMA Corp go up and down completely randomly.
Pair Corralation between Histogen and XOMA Corp
Given the investment horizon of 90 days Histogen is expected to under-perform the XOMA Corp. In addition to that, Histogen is 5.82 times more volatile than XOMA Corp. It trades about -0.3 of its total potential returns per unit of risk. XOMA Corp is currently generating about 0.16 per unit of volatility. If you would invest 3,022 in XOMA Corp on August 29, 2024 and sell it today you would earn a total of 366.00 from holding XOMA Corp or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Histogen vs. XOMA Corp
Performance |
| Timeline |
| Histogen |
| XOMA Corp |
Histogen and XOMA Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and XOMA Corp
The main advantage of trading using opposite Histogen and XOMA Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen position performs unexpectedly, XOMA Corp 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 Corp will offset losses from the drop in XOMA Corp's long position.| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
| XOMA Corp vs. Werewolf Therapeutics | XOMA Corp vs. Edgewise Therapeutics | XOMA Corp vs. Celcuity LLC | XOMA Corp vs. C4 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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