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
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saniona and Xbrane is -0.47. 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
Assuming the 90 days trading horizon Saniona AB is expected to generate 0.5 times more return on investment than Xbrane Biopharma. However, Saniona AB is 1.99 times less risky than Xbrane Biopharma. It trades about 0.03 of its potential returns per unit of risk. Xbrane Biopharma AB is currently generating about -0.02 per unit of risk. If you would invest 358.00 in Saniona AB on August 26, 2024 and sell it today you would lose (67.00) from holding Saniona AB or give up 18.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saniona AB vs. Xbrane Biopharma AB
Performance |
| Timeline |
| Saniona AB |
| 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.The idea behind Saniona AB and Xbrane Biopharma AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Xbrane Biopharma vs. Hansa Biopharma AB | Xbrane Biopharma vs. Vicore Pharma Holding | Xbrane Biopharma vs. XSpray Pharma AB | Xbrane Biopharma vs. Saniona 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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