Correlation Between Xenetic Biosciences and Benitec Biopharma
Can any of the company-specific risk be diversified away by investing in both Xenetic Biosciences and Benitec 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 Xenetic Biosciences and Benitec Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenetic Biosciences and Benitec Biopharma Ltd, you can compare the effects of market volatilities on Xenetic Biosciences and Benitec 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 Xenetic Biosciences with a short position of Benitec Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenetic Biosciences and Benitec Biopharma.
Diversification Opportunities for Xenetic Biosciences and Benitec Biopharma
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xenetic and Benitec is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Xenetic Biosciences and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma and Xenetic Biosciences 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 Xenetic Biosciences are associated (or correlated) with Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Xenetic Biosciences i.e., Xenetic Biosciences and Benitec Biopharma go up and down completely randomly.
Pair Corralation between Xenetic Biosciences and Benitec Biopharma
Given the investment horizon of 90 days Xenetic Biosciences is expected to generate 1.26 times more return on investment than Benitec Biopharma. However, Xenetic Biosciences is 1.26 times more volatile than Benitec Biopharma Ltd. It trades about 0.06 of its potential returns per unit of risk. Benitec Biopharma Ltd is currently generating about -0.08 per unit of risk. If you would invest 410.00 in Xenetic Biosciences on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Xenetic Biosciences or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenetic Biosciences vs. Benitec Biopharma Ltd
Performance |
| Timeline |
| Xenetic Biosciences |
| Benitec Biopharma |
Xenetic Biosciences and Benitec Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenetic Biosciences and Benitec Biopharma
The main advantage of trading using opposite Xenetic Biosciences and Benitec Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenetic Biosciences position performs unexpectedly, Benitec 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 Benitec Biopharma will offset losses from the drop in Benitec Biopharma's long position.| Xenetic Biosciences vs. Transcode Therapeutics | Xenetic Biosciences vs. ZyVersa Therapeutics | Xenetic Biosciences vs. Immix Biopharma | Xenetic Biosciences vs. Phio Pharmaceuticals Corp |
| Benitec Biopharma vs. Bio Path Holdings | Benitec Biopharma vs. Capricor Therapeutics | Benitec Biopharma vs. NextCure | Benitec Biopharma vs. Aileron Therapeutics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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