Correlation Between TRACON Pharmaceuticals and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both TRACON Pharmaceuticals 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 TRACON Pharmaceuticals and Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRACON Pharmaceuticals and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on TRACON Pharmaceuticals 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 TRACON Pharmaceuticals with a short position of Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRACON Pharmaceuticals and Lixte Biotechnology.
Diversification Opportunities for TRACON Pharmaceuticals and Lixte Biotechnology
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TRACON and Lixte is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding TRACON Pharmaceuticals and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology and TRACON Pharmaceuticals 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 TRACON Pharmaceuticals 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 TRACON Pharmaceuticals i.e., TRACON Pharmaceuticals and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between TRACON Pharmaceuticals and Lixte Biotechnology
If you would invest 211.00 in Lixte Biotechnology Holdings on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Lixte Biotechnology Holdings or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
TRACON Pharmaceuticals vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| TRACON Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lixte Biotechnology |
TRACON Pharmaceuticals and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRACON Pharmaceuticals and Lixte Biotechnology
The main advantage of trading using opposite TRACON Pharmaceuticals and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRACON Pharmaceuticals 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.| TRACON Pharmaceuticals vs. Rezolute | TRACON Pharmaceuticals vs. XOMA Corp | TRACON Pharmaceuticals vs. Vincerx Pharma | TRACON Pharmaceuticals vs. Histogen |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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