Correlation Between Lixte Biotechnology and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology and MAIA Biotechnology 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 MAIA Biotechnology 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 MAIA Biotechnology, you can compare the effects of market volatilities on Lixte Biotechnology and MAIA Biotechnology 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 MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and MAIA Biotechnology.
Diversification Opportunities for Lixte Biotechnology and MAIA Biotechnology
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lixte and MAIA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology 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 MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of Lixte Biotechnology i.e., Lixte Biotechnology and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and MAIA Biotechnology
Given the investment horizon of 90 days Lixte Biotechnology Holdings is expected to generate 1.26 times more return on investment than MAIA Biotechnology. However, Lixte Biotechnology is 1.26 times more volatile than MAIA Biotechnology. It trades about 0.12 of its potential returns per unit of risk. MAIA Biotechnology is currently generating about -0.19 per unit of risk. If you would invest 195.00 in Lixte Biotechnology Holdings on September 3, 2024 and sell it today you would earn a total of 28.00 from holding Lixte Biotechnology Holdings or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lixte Biotechnology Holdings vs. MAIA Biotechnology
Performance |
| Timeline |
| Lixte Biotechnology |
| MAIA Biotechnology |
Lixte Biotechnology and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixte Biotechnology and MAIA Biotechnology
The main advantage of trading using opposite Lixte Biotechnology and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology'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 |
| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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