Correlation Between Xbrane Biopharma and Idogen AB
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Idogen AB 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 Idogen AB 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 Idogen AB, you can compare the effects of market volatilities on Xbrane Biopharma and Idogen AB 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 Idogen AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Idogen AB.
Diversification Opportunities for Xbrane Biopharma and Idogen AB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xbrane and Idogen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Idogen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idogen 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 Idogen AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idogen AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Idogen AB go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Idogen AB
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to under-perform the Idogen AB. But the stock apears to be less risky and, when comparing its historical volatility, Xbrane Biopharma AB is 2.32 times less risky than Idogen AB. The stock trades about -0.02 of its potential returns per unit of risk. The Idogen AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Idogen AB on August 30, 2024 and sell it today you would lose (5.00) from holding Idogen AB or give up 29.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Idogen AB
Performance |
| Timeline |
| Xbrane Biopharma |
| Idogen AB |
Xbrane Biopharma and Idogen AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Idogen AB
The main advantage of trading using opposite Xbrane Biopharma and Idogen AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Idogen AB 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 Idogen AB will offset losses from the drop in Idogen AB'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 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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