Correlation Between Xbrane Biopharma and Acarix AS
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Acarix AS 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 Xbrane Biopharma and Acarix AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xbrane Biopharma AB and Acarix AS, you can compare the effects of market volatilities on Xbrane Biopharma and Acarix AS 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 Xbrane Biopharma with a short position of Acarix AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Acarix AS.
Diversification Opportunities for Xbrane Biopharma and Acarix AS
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xbrane and Acarix is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Acarix AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acarix AS and Xbrane Biopharma 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 Xbrane Biopharma AB are associated (or correlated) with Acarix AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acarix AS has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Acarix AS go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Acarix AS
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to generate 1.19 times more return on investment than Acarix AS. However, Xbrane Biopharma is 1.19 times more volatile than Acarix AS. It trades about 0.03 of its potential returns per unit of risk. Acarix AS is currently generating about 0.03 per unit of risk. If you would invest 20.00 in Xbrane Biopharma AB on September 3, 2024 and sell it today you would lose (1.00) from holding Xbrane Biopharma AB or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Acarix AS
Performance |
| Timeline |
| Xbrane Biopharma |
| Acarix AS |
Xbrane Biopharma and Acarix AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Acarix AS
The main advantage of trading using opposite Xbrane Biopharma and Acarix AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Acarix AS 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 Acarix AS will offset losses from the drop in Acarix AS's long position.| Xbrane Biopharma vs. Stille AB | Xbrane Biopharma vs. Midsona AB | Xbrane Biopharma vs. Precio Fishbone AB | Xbrane Biopharma vs. C Rad AB |
| Acarix AS vs. Saniona AB | Acarix AS vs. Cantargia AB | Acarix AS vs. Biovica International AB | Acarix AS vs. ExpreS2ion Biotech Holding |
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 Stocks Directory module to find actively traded stocks across global markets.
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