Correlation Between Xbrane Biopharma and BioArctic
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and BioArctic 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 BioArctic 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 BioArctic AB, you can compare the effects of market volatilities on Xbrane Biopharma and BioArctic 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 BioArctic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and BioArctic.
Diversification Opportunities for Xbrane Biopharma and BioArctic
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xbrane and BioArctic is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and BioArctic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioArctic AB 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 BioArctic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioArctic AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and BioArctic go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and BioArctic
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to generate 1.81 times more return on investment than BioArctic. However, Xbrane Biopharma is 1.81 times more volatile than BioArctic AB. It trades about 0.02 of its potential returns per unit of risk. BioArctic AB is currently generating about -0.09 per unit of risk. If you would invest 16.00 in Xbrane Biopharma AB on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Xbrane Biopharma AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. BioArctic AB
Performance |
| Timeline |
| Xbrane Biopharma |
| BioArctic AB |
Xbrane Biopharma and BioArctic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and BioArctic
The main advantage of trading using opposite Xbrane Biopharma and BioArctic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, BioArctic 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 BioArctic will offset losses from the drop in BioArctic's long position.| Xbrane Biopharma vs. Hansa Biopharma AB | Xbrane Biopharma vs. Vicore Pharma Holding | Xbrane Biopharma vs. XSpray Pharma AB | Xbrane Biopharma vs. Saniona AB |
| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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