Correlation Between Xenetic Biosciences and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Xenetic Biosciences and Cue 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 Cue 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 Cue Biopharma, you can compare the effects of market volatilities on Xenetic Biosciences and Cue 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 Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenetic Biosciences and Cue Biopharma.
Diversification Opportunities for Xenetic Biosciences and Cue Biopharma
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xenetic and Cue is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xenetic Biosciences and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue 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 Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of Xenetic Biosciences i.e., Xenetic Biosciences and Cue Biopharma go up and down completely randomly.
Pair Corralation between Xenetic Biosciences and Cue Biopharma
Given the investment horizon of 90 days Xenetic Biosciences is expected to generate 0.62 times more return on investment than Cue Biopharma. However, Xenetic Biosciences is 1.62 times less risky than Cue Biopharma. It trades about 0.01 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.17 per unit of risk. If you would invest 428.00 in Xenetic Biosciences on August 31, 2024 and sell it today you would lose (8.00) from holding Xenetic Biosciences or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenetic Biosciences vs. Cue Biopharma
Performance |
| Timeline |
| Xenetic Biosciences |
| Cue Biopharma |
Xenetic Biosciences and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenetic Biosciences and Cue Biopharma
The main advantage of trading using opposite Xenetic Biosciences and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenetic Biosciences position performs unexpectedly, Cue 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 Cue Biopharma will offset losses from the drop in Cue Biopharma's long position.| Xenetic Biosciences vs. Cue Biopharma | Xenetic Biosciences vs. Tff Pharmaceuticals | Xenetic Biosciences vs. Eliem Therapeutics | Xenetic Biosciences vs. Inhibrx |
| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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