Correlation Between Xbrane Biopharma and Lipigon Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals AB, you can compare the effects of market volatilities on Xbrane Biopharma and Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Lipigon Pharmaceuticals.
Diversification Opportunities for Xbrane Biopharma and Lipigon Pharmaceuticals
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xbrane and Lipigon is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Lipigon Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipigon Pharmaceuticals has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Lipigon Pharmaceuticals go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Lipigon Pharmaceuticals
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to under-perform the Lipigon Pharmaceuticals. In addition to that, Xbrane Biopharma is 2.05 times more volatile than Lipigon Pharmaceuticals AB. It trades about -0.03 of its total potential returns per unit of risk. Lipigon Pharmaceuticals AB is currently generating about -0.02 per unit of volatility. If you would invest 56.00 in Lipigon Pharmaceuticals AB on November 28, 2024 and sell it today you would lose (43.00) from holding Lipigon Pharmaceuticals AB or give up 76.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Lipigon Pharmaceuticals AB
Performance |
| Timeline |
| Xbrane Biopharma |
| Lipigon Pharmaceuticals |
Xbrane Biopharma and Lipigon Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Lipigon Pharmaceuticals
The main advantage of trading using opposite Xbrane Biopharma and Lipigon Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals will offset losses from the drop in Lipigon Pharmaceuticals' 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 |
| Lipigon Pharmaceuticals vs. Sprint Bioscience AB | Lipigon Pharmaceuticals vs. BioArctic AB | Lipigon Pharmaceuticals vs. Veg of Lund | Lipigon Pharmaceuticals vs. Ascelia Pharma 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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