Correlation Between Lixte Biotechnology and ContraFect Corp
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology and ContraFect 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 Lixte Biotechnology and ContraFect Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lixte Biotechnology Holdings and ContraFect Corp, you can compare the effects of market volatilities on Lixte Biotechnology and ContraFect 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 Lixte Biotechnology with a short position of ContraFect Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and ContraFect Corp.
Diversification Opportunities for Lixte Biotechnology and ContraFect Corp
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lixte and ContraFect is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and ContraFect Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ContraFect Corp and Lixte Biotechnology 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 Lixte Biotechnology Holdings are associated (or correlated) with ContraFect Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ContraFect Corp has no effect on the direction of Lixte Biotechnology i.e., Lixte Biotechnology and ContraFect Corp go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and ContraFect Corp
Given the investment horizon of 90 days Lixte Biotechnology Holdings is expected to generate 0.6 times more return on investment than ContraFect Corp. However, Lixte Biotechnology Holdings is 1.67 times less risky than ContraFect Corp. It trades about 0.02 of its potential returns per unit of risk. ContraFect Corp is currently generating about -0.03 per unit of risk. If you would invest 623.00 in Lixte Biotechnology Holdings on August 30, 2024 and sell it today you would lose (406.00) from holding Lixte Biotechnology Holdings or give up 65.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.31% |
| Values | Daily Returns |
Lixte Biotechnology Holdings vs. ContraFect Corp
Performance |
| Timeline |
| Lixte Biotechnology |
| ContraFect Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lixte Biotechnology and ContraFect Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixte Biotechnology and ContraFect Corp
The main advantage of trading using opposite Lixte Biotechnology and ContraFect Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology position performs unexpectedly, ContraFect 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 ContraFect Corp will offset losses from the drop in ContraFect Corp's long position.| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Neurobo Pharmaceuticals | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd |
| ContraFect Corp vs. Palisade Bio | ContraFect Corp vs. Allarity Therapeutics | ContraFect Corp vs. Cns Pharmaceuticals | ContraFect Corp vs. Windtree 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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