Correlation Between Xbrane Biopharma and Scibase AB
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Scibase 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 Scibase 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 Scibase AB, you can compare the effects of market volatilities on Xbrane Biopharma and Scibase 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 Scibase AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Scibase AB.
Diversification Opportunities for Xbrane Biopharma and Scibase AB
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xbrane and Scibase is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Scibase AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scibase 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 Scibase AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scibase AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Scibase AB go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Scibase AB
Assuming the 90 days trading horizon Xbrane Biopharma is expected to generate 1.65 times less return on investment than Scibase AB. In addition to that, Xbrane Biopharma is 1.21 times more volatile than Scibase AB. It trades about 0.03 of its total potential returns per unit of risk. Scibase AB is currently generating about 0.06 per unit of volatility. If you would invest 31.00 in Scibase AB on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Scibase AB or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Scibase AB
Performance |
| Timeline |
| Xbrane Biopharma |
| Scibase AB |
Xbrane Biopharma and Scibase AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Scibase AB
The main advantage of trading using opposite Xbrane Biopharma and Scibase AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Scibase 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 Scibase AB will offset losses from the drop in Scibase AB'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 |
| Scibase AB vs. Acarix AS | Scibase AB vs. Episurf Medical AB | Scibase AB vs. Xbrane Biopharma AB | Scibase AB vs. Scandinavian Enviro Systems |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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