Correlation Between Metall Zug and Xlife Sciences
Can any of the company-specific risk be diversified away by investing in both Metall Zug and Xlife Sciences 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 Metall Zug and Xlife Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metall Zug AG and Xlife Sciences AG, you can compare the effects of market volatilities on Metall Zug and Xlife Sciences 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 Metall Zug with a short position of Xlife Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metall Zug and Xlife Sciences.
Diversification Opportunities for Metall Zug and Xlife Sciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metall and Xlife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Metall Zug AG and Xlife Sciences AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xlife Sciences AG and Metall Zug 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 Metall Zug AG are associated (or correlated) with Xlife Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xlife Sciences AG has no effect on the direction of Metall Zug i.e., Metall Zug and Xlife Sciences go up and down completely randomly.
Pair Corralation between Metall Zug and Xlife Sciences
Assuming the 90 days trading horizon Metall Zug AG is expected to under-perform the Xlife Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Metall Zug AG is 3.0 times less risky than Xlife Sciences. The stock trades about -0.07 of its potential returns per unit of risk. The Xlife Sciences AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,890 in Xlife Sciences AG on September 13, 2024 and sell it today you would lose (310.00) from holding Xlife Sciences AG or give up 10.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Metall Zug AG vs. Xlife Sciences AG
Performance |
| Timeline |
| Metall Zug AG |
| Xlife Sciences AG |
Metall Zug and Xlife Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metall Zug and Xlife Sciences
The main advantage of trading using opposite Metall Zug and Xlife Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metall Zug position performs unexpectedly, Xlife Sciences 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 Xlife Sciences will offset losses from the drop in Xlife Sciences' long position.| Metall Zug vs. Bucher Industries AG | Metall Zug vs. Burckhardt Compression | Metall Zug vs. Also Holding AG | Metall Zug vs. Emmi AG |
| Xlife Sciences vs. Metall Zug AG | Xlife Sciences vs. Cembra Money Bank | Xlife Sciences vs. BB Biotech AG | Xlife Sciences vs. Basellandschaftliche Kantonalbank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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