Correlation Between Xbrane Biopharma and Cantargia
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Cantargia 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 Cantargia 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 Cantargia AB, you can compare the effects of market volatilities on Xbrane Biopharma and Cantargia 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 Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Cantargia.
Diversification Opportunities for Xbrane Biopharma and Cantargia
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xbrane and Cantargia is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia 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 Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Cantargia go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Cantargia
Assuming the 90 days trading horizon Xbrane Biopharma is expected to generate 5.1 times less return on investment than Cantargia. In addition to that, Xbrane Biopharma is 1.71 times more volatile than Cantargia AB. It trades about 0.02 of its total potential returns per unit of risk. Cantargia AB is currently generating about 0.17 per unit of volatility. If you would invest 167.00 in Cantargia AB on October 25, 2024 and sell it today you would earn a total of 11.00 from holding Cantargia AB or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Cantargia AB
Performance |
| Timeline |
| Xbrane Biopharma |
| Cantargia AB |
Xbrane Biopharma and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Cantargia
The main advantage of trading using opposite Xbrane Biopharma and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia'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 |
| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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