Correlation Between Xbrane Biopharma and Episurf Medical
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Episurf Medical 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 Episurf Medical 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 Episurf Medical AB, you can compare the effects of market volatilities on Xbrane Biopharma and Episurf Medical 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 Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Episurf Medical.
Diversification Opportunities for Xbrane Biopharma and Episurf Medical
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xbrane and Episurf is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical 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 Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Episurf Medical go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Episurf Medical
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to generate 1.26 times more return on investment than Episurf Medical. However, Xbrane Biopharma is 1.26 times more volatile than Episurf Medical AB. It trades about 0.03 of its potential returns per unit of risk. Episurf Medical AB is currently generating about -0.11 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Episurf Medical AB
Performance |
| Timeline |
| Xbrane Biopharma |
| Episurf Medical AB |
Xbrane Biopharma and Episurf Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Episurf Medical
The main advantage of trading using opposite Xbrane Biopharma and Episurf Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Episurf Medical 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 Episurf Medical will offset losses from the drop in Episurf Medical'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 |
| Episurf Medical vs. BioInvent International AB | Episurf Medical vs. Cantargia AB | Episurf Medical vs. Bonesupport Holding AB | Episurf Medical vs. Bactiguard Holding 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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