Correlation Between Xbrane Biopharma and Serstech
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Serstech 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 Serstech 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 Serstech AB, you can compare the effects of market volatilities on Xbrane Biopharma and Serstech 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 Serstech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Serstech.
Diversification Opportunities for Xbrane Biopharma and Serstech
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xbrane and Serstech is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Serstech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serstech 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 Serstech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serstech AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Serstech go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Serstech
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to under-perform the Serstech. In addition to that, Xbrane Biopharma is 2.16 times more volatile than Serstech AB. It trades about -0.02 of its total potential returns per unit of risk. Serstech AB is currently generating about 0.06 per unit of volatility. If you would invest 44.00 in Serstech AB on August 26, 2024 and sell it today you would earn a total of 81.00 from holding Serstech AB or generate 184.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Serstech AB
Performance |
| Timeline |
| Xbrane Biopharma |
| Serstech AB |
Xbrane Biopharma and Serstech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Serstech
The main advantage of trading using opposite Xbrane Biopharma and Serstech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Serstech 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 Serstech will offset losses from the drop in Serstech'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 |
| Serstech vs. Novotek AB | Serstech vs. Addnode Group AB | Serstech vs. Softronic AB | Serstech vs. CTT Systems 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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