Correlation Between Saniona AB and Xbrane Biopharma
Can any of the company-specific risk be diversified away by investing in both Saniona AB and Xbrane Biopharma 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 Saniona AB and Xbrane Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saniona AB and Xbrane Biopharma AB, you can compare the effects of market volatilities on Saniona AB and Xbrane Biopharma 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 Saniona AB with a short position of Xbrane Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Xbrane Biopharma.
Diversification Opportunities for Saniona AB and Xbrane Biopharma
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saniona and Xbrane is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and Xbrane Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xbrane Biopharma and Saniona AB 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 Saniona AB are associated (or correlated) with Xbrane Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xbrane Biopharma has no effect on the direction of Saniona AB i.e., Saniona AB and Xbrane Biopharma go up and down completely randomly.
Pair Corralation between Saniona AB and Xbrane Biopharma
If you would invest (100.00) in Saniona AB on October 25, 2024 and sell it today you would earn a total of 100.00 from holding Saniona AB or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Saniona AB vs. Xbrane Biopharma AB
Performance |
| Timeline |
| Saniona AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Xbrane Biopharma |
Saniona AB and Xbrane Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saniona AB and Xbrane Biopharma
The main advantage of trading using opposite Saniona AB and Xbrane Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB position performs unexpectedly, Xbrane Biopharma 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 Xbrane Biopharma will offset losses from the drop in Xbrane Biopharma's long position.| Saniona AB vs. GomSpace Group AB | Saniona AB vs. Hansa Biopharma AB | Saniona AB vs. BioInvent International AB |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |