Correlation Between Xenetic Biosciences and Neximmune
Can any of the company-specific risk be diversified away by investing in both Xenetic Biosciences and Neximmune 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 Neximmune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenetic Biosciences and Neximmune, you can compare the effects of market volatilities on Xenetic Biosciences and Neximmune 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 Neximmune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenetic Biosciences and Neximmune.
Diversification Opportunities for Xenetic Biosciences and Neximmune
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xenetic and Neximmune is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Xenetic Biosciences and Neximmune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neximmune 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 Neximmune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neximmune has no effect on the direction of Xenetic Biosciences i.e., Xenetic Biosciences and Neximmune go up and down completely randomly.
Pair Corralation between Xenetic Biosciences and Neximmune
Given the investment horizon of 90 days Xenetic Biosciences is expected to generate 10.84 times less return on investment than Neximmune. But when comparing it to its historical volatility, Xenetic Biosciences is 3.17 times less risky than Neximmune. It trades about 0.01 of its potential returns per unit of risk. Neximmune is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,050 in Neximmune on August 27, 2024 and sell it today you would lose (807.00) from holding Neximmune or give up 76.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.78% |
| Values | Daily Returns |
Xenetic Biosciences vs. Neximmune
Performance |
| Timeline |
| Xenetic Biosciences |
| Neximmune |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xenetic Biosciences and Neximmune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenetic Biosciences and Neximmune
The main advantage of trading using opposite Xenetic Biosciences and Neximmune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenetic Biosciences position performs unexpectedly, Neximmune 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 Neximmune will offset losses from the drop in Neximmune's long position.| Xenetic Biosciences vs. Eliem Therapeutics | Xenetic Biosciences vs. HCW Biologics | Xenetic Biosciences vs. Scpharmaceuticals | Xenetic Biosciences vs. Milestone Pharmaceuticals |
| Neximmune vs. ZyVersa Therapeutics | Neximmune vs. Palisade Bio | Neximmune vs. Unicycive Therapeutics | Neximmune vs. Immix Biopharma |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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