Correlation Between Kiromic Biopharma and XOMA
Can any of the company-specific risk be diversified away by investing in both Kiromic Biopharma 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 Kiromic Biopharma and XOMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiromic Biopharma and XOMA Corporation, you can compare the effects of market volatilities on Kiromic Biopharma 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 Kiromic Biopharma with a short position of XOMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiromic Biopharma and XOMA.
Diversification Opportunities for Kiromic Biopharma and XOMA
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kiromic and XOMA is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kiromic Biopharma and XOMA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XOMA and Kiromic Biopharma 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 Kiromic Biopharma 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 Kiromic Biopharma i.e., Kiromic Biopharma and XOMA go up and down completely randomly.
Pair Corralation between Kiromic Biopharma and XOMA
Given the investment horizon of 90 days Kiromic Biopharma is expected to under-perform the XOMA. In addition to that, Kiromic Biopharma is 11.11 times more volatile than XOMA Corporation. It trades about -0.01 of its total potential returns per unit of risk. XOMA Corporation is currently generating about 0.06 per unit of volatility. If you would invest 2,001 in XOMA Corporation on August 28, 2024 and sell it today you would earn a total of 526.00 from holding XOMA Corporation or generate 26.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 31.72% |
| Values | Daily Returns |
Kiromic Biopharma vs. XOMA Corp.
Performance |
| Timeline |
| Kiromic Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| XOMA |
Kiromic Biopharma and XOMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiromic Biopharma and XOMA
The main advantage of trading using opposite Kiromic Biopharma and XOMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiromic Biopharma 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.| Kiromic Biopharma vs. Quoin Pharmaceuticals Ltd | Kiromic Biopharma vs. Allarity Therapeutics | Kiromic Biopharma vs. Virax Biolabs Group | Kiromic Biopharma vs. Biodexa Pharmaceticals |
| XOMA vs. Harrow Health 8625 | XOMA vs. SiriusPoint | XOMA vs. New York Mortgage | XOMA vs. Sachem Capital Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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