Correlation Between Lixte Biotechnology and Clene
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology and Clene 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 Clene 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 Clene Inc, you can compare the effects of market volatilities on Lixte Biotechnology and Clene 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 Clene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and Clene.
Diversification Opportunities for Lixte Biotechnology and Clene
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lixte and Clene is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and Clene Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clene Inc 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 Clene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clene Inc has no effect on the direction of Lixte Biotechnology i.e., Lixte Biotechnology and Clene go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and Clene
Assuming the 90 days horizon Lixte Biotechnology is expected to generate 7.64 times less return on investment than Clene. But when comparing it to its historical volatility, Lixte Biotechnology Holdings is 1.81 times less risky than Clene. It trades about 0.05 of its potential returns per unit of risk. Clene Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3.26 in Clene Inc on August 28, 2024 and sell it today you would earn a total of 1.68 from holding Clene Inc or generate 51.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Lixte Biotechnology Holdings vs. Clene Inc
Performance |
| Timeline |
| Lixte Biotechnology |
| Clene Inc |
Lixte Biotechnology and Clene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixte Biotechnology and Clene
The main advantage of trading using opposite Lixte Biotechnology and Clene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology position performs unexpectedly, Clene 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 Clene will offset losses from the drop in Clene's long position.| Lixte Biotechnology vs. Reviva Pharmaceuticals Holdings | Lixte Biotechnology vs. CannBioRx Life Sciences |
| Clene vs. Atlantic Sapphire ASA | Clene vs. Local Bounti Corp | Clene vs. Forafric Global PLC | Clene vs. Forafric Global PLC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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