Correlation Between Intercure and XTL Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Intercure and XTL Biopharmaceutica 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 Intercure and XTL Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercure and XTL Biopharmaceuticals, you can compare the effects of market volatilities on Intercure and XTL Biopharmaceutica 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 Intercure with a short position of XTL Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercure and XTL Biopharmaceutica.
Diversification Opportunities for Intercure and XTL Biopharmaceutica
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intercure and XTL is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Intercure and XTL Biopharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals and Intercure 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 Intercure are associated (or correlated) with XTL Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTL Biopharmaceuticals has no effect on the direction of Intercure i.e., Intercure and XTL Biopharmaceutica go up and down completely randomly.
Pair Corralation between Intercure and XTL Biopharmaceutica
Assuming the 90 days trading horizon Intercure is expected to under-perform the XTL Biopharmaceutica. But the stock apears to be less risky and, when comparing its historical volatility, Intercure is 1.34 times less risky than XTL Biopharmaceutica. The stock trades about -0.42 of its potential returns per unit of risk. The XTL Biopharmaceuticals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 630.00 in XTL Biopharmaceuticals on September 1, 2024 and sell it today you would earn a total of 20.00 from holding XTL Biopharmaceuticals or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercure vs. XTL Biopharmaceuticals
Performance |
| Timeline |
| Intercure |
| XTL Biopharmaceuticals |
Intercure and XTL Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercure and XTL Biopharmaceutica
The main advantage of trading using opposite Intercure and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercure position performs unexpectedly, XTL Biopharmaceutica 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 XTL Biopharmaceutica will offset losses from the drop in XTL Biopharmaceutica's long position.| Intercure vs. Together Startup Network | Intercure vs. Delek Group | Intercure vs. Teva Pharmaceutical Industries | Intercure vs. El Al Israel |
| XTL Biopharmaceutica vs. XTL Biopharmaceuticals Ltd | XTL Biopharmaceutica vs. Intercure | XTL Biopharmaceutica vs. BioLine RX | XTL Biopharmaceutica vs. Foresight Autonomous Holdings |
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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