Correlation Between PeptiDream and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both PeptiDream and Lixte 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 PeptiDream and Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PeptiDream and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on PeptiDream and Lixte 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 PeptiDream with a short position of Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PeptiDream and Lixte Biotechnology.
Diversification Opportunities for PeptiDream and Lixte Biotechnology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PeptiDream and Lixte is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PeptiDream and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology and PeptiDream 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 PeptiDream are associated (or correlated) with Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of PeptiDream i.e., PeptiDream and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between PeptiDream and Lixte Biotechnology
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 Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
PeptiDream vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| PeptiDream |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Lixte Biotechnology |
PeptiDream and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PeptiDream and Lixte Biotechnology
The main advantage of trading using opposite PeptiDream and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PeptiDream position performs unexpectedly, Lixte 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| PeptiDream vs. Innovent Biologics | PeptiDream vs. Telix Pharmaceuticals Limited | PeptiDream vs. Keros Therapeutics | PeptiDream vs. MAIA Biotechnology |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Neurobo Pharmaceuticals | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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