Correlation Between Krystal Biotech and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both Krystal Biotech and Xenetic Biosciences 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 Krystal Biotech and Xenetic Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krystal Biotech and Xenetic Biosciences, you can compare the effects of market volatilities on Krystal Biotech and Xenetic Biosciences 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 Krystal Biotech with a short position of Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krystal Biotech and Xenetic Biosciences.
Diversification Opportunities for Krystal Biotech and Xenetic Biosciences
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Krystal and Xenetic is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Krystal Biotech and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences and Krystal Biotech 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 Krystal Biotech are associated (or correlated) with Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of Krystal Biotech i.e., Krystal Biotech and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between Krystal Biotech and Xenetic Biosciences
Given the investment horizon of 90 days Krystal Biotech is expected to under-perform the Xenetic Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Krystal Biotech is 1.37 times less risky than Xenetic Biosciences. The stock trades about -0.24 of its potential returns per unit of risk. The Xenetic Biosciences is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Xenetic Biosciences on October 16, 2024 and sell it today you would lose (3.00) from holding Xenetic Biosciences or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Krystal Biotech vs. Xenetic Biosciences
Performance |
| Timeline |
| Krystal Biotech |
| Xenetic Biosciences |
Krystal Biotech and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krystal Biotech and Xenetic Biosciences
The main advantage of trading using opposite Krystal Biotech and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krystal Biotech position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.| Krystal Biotech vs. MeiraGTx Holdings PLC | Krystal Biotech vs. Apellis Pharmaceuticals | Krystal Biotech vs. Regenxbio | Krystal Biotech vs. Rhythm Pharmaceuticals |
| Xenetic Biosciences vs. Ginkgo Bioworks Holdings | Xenetic Biosciences vs. CureVac NV | Xenetic Biosciences vs. Iovance Biotherapeutics | Xenetic Biosciences vs. Krystal Biotech |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |