Correlation Between Stille AB and Xbrane Biopharma
Can any of the company-specific risk be diversified away by investing in both Stille 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 Stille 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 Stille AB and Xbrane Biopharma AB, you can compare the effects of market volatilities on Stille 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 Stille AB with a short position of Xbrane Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stille AB and Xbrane Biopharma.
Diversification Opportunities for Stille AB and Xbrane Biopharma
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stille and Xbrane is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Stille 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 Stille 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 Stille 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 Stille AB i.e., Stille AB and Xbrane Biopharma go up and down completely randomly.
Pair Corralation between Stille AB and Xbrane Biopharma
Assuming the 90 days trading horizon Stille AB is expected to generate 0.52 times more return on investment than Xbrane Biopharma. However, Stille AB is 1.94 times less risky than Xbrane Biopharma. It trades about 0.13 of its potential returns per unit of risk. Xbrane Biopharma AB is currently generating about -0.17 per unit of risk. If you would invest 21,000 in Stille AB on September 3, 2024 and sell it today you would earn a total of 1,000.00 from holding Stille AB or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stille AB vs. Xbrane Biopharma AB
Performance |
| Timeline |
| Stille AB |
| Xbrane Biopharma |
Stille AB and Xbrane Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stille AB and Xbrane Biopharma
The main advantage of trading using opposite Stille AB and Xbrane Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stille 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.| Stille AB vs. C Rad AB | Stille AB vs. CellaVision AB | Stille AB vs. Boule Diagnostics AB | Stille AB vs. Genovis AB |
| Xbrane Biopharma vs. Stille AB | Xbrane Biopharma vs. Midsona AB | Xbrane Biopharma vs. Precio Fishbone AB | Xbrane Biopharma vs. C Rad 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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