Correlation Between NVIDIA and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both NVIDIA and Xenetic Biosciences 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 NVIDIA and Xenetic Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA and Xenetic Biosciences, you can compare the effects of market volatilities on NVIDIA and Xenetic Biosciences 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 NVIDIA with a short position of Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and Xenetic Biosciences.
Diversification Opportunities for NVIDIA and Xenetic Biosciences
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between NVIDIA and Xenetic is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences and NVIDIA 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 NVIDIA are associated (or correlated) with Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of NVIDIA i.e., NVIDIA and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between NVIDIA and Xenetic Biosciences
Given the investment horizon of 90 days NVIDIA is expected to under-perform the Xenetic Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, NVIDIA is 2.37 times less risky than Xenetic Biosciences. The stock trades about -0.05 of its potential returns per unit of risk. The Xenetic Biosciences is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Xenetic Biosciences on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Xenetic Biosciences or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NVIDIA vs. Xenetic Biosciences
Performance |
| Timeline |
| NVIDIA |
| Xenetic Biosciences |
NVIDIA and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA and Xenetic Biosciences
The main advantage of trading using opposite NVIDIA and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.| NVIDIA vs. Intel | NVIDIA vs. Taiwan Semiconductor Manufacturing | NVIDIA vs. Marvell Technology Group | NVIDIA vs. Micron Technology |
| Xenetic Biosciences vs. Eliem Therapeutics | Xenetic Biosciences vs. HCW Biologics | Xenetic Biosciences vs. Scpharmaceuticals | Xenetic Biosciences vs. Milestone Pharmaceuticals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |