Correlation Between Lixte Biotechnology and Cingulate
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology and Cingulate 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 Cingulate 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 Cingulate, you can compare the effects of market volatilities on Lixte Biotechnology and Cingulate 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 Cingulate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and Cingulate.
Diversification Opportunities for Lixte Biotechnology and Cingulate
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lixte and Cingulate is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and Cingulate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate 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 Cingulate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate has no effect on the direction of Lixte Biotechnology i.e., Lixte Biotechnology and Cingulate go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and Cingulate
Given the investment horizon of 90 days Lixte Biotechnology Holdings is expected to generate 0.89 times more return on investment than Cingulate. However, Lixte Biotechnology Holdings is 1.12 times less risky than Cingulate. It trades about 0.16 of its potential returns per unit of risk. Cingulate is currently generating about -0.11 per unit of risk. If you would invest 222.00 in Lixte Biotechnology Holdings on November 2, 2024 and sell it today you would earn a total of 26.00 from holding Lixte Biotechnology Holdings or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lixte Biotechnology Holdings vs. Cingulate
Performance |
| Timeline |
| Lixte Biotechnology |
| Cingulate |
Lixte Biotechnology and Cingulate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixte Biotechnology and Cingulate
The main advantage of trading using opposite Lixte Biotechnology and Cingulate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology position performs unexpectedly, Cingulate 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 Cingulate will offset losses from the drop in Cingulate's long position.| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd | Lixte Biotechnology vs. Indaptus Therapeutics |
| Cingulate vs. SAB Biotherapeutics | Cingulate vs. Senti Biosciences | Cingulate vs. Aerovate Therapeutics | Cingulate vs. Adagene |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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