Correlation Between Xbrane Biopharma and Stille AB
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Stille 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 Stille 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 Stille AB, you can compare the effects of market volatilities on Xbrane Biopharma and Stille 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 Stille AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Stille AB.
Diversification Opportunities for Xbrane Biopharma and Stille AB
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xbrane and Stille is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Stille AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stille 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 Stille AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stille AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Stille AB go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Stille AB
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to under-perform the Stille AB. In addition to that, Xbrane Biopharma is 5.88 times more volatile than Stille AB. It trades about -0.02 of its total potential returns per unit of risk. Stille AB is currently generating about 0.07 per unit of volatility. If you would invest 11,664 in Stille AB on September 4, 2024 and sell it today you would earn a total of 10,036 from holding Stille AB or generate 86.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xbrane Biopharma AB vs. Stille AB
Performance |
| Timeline |
| Xbrane Biopharma |
| Stille AB |
Xbrane Biopharma and Stille AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xbrane Biopharma and Stille AB
The main advantage of trading using opposite Xbrane Biopharma and Stille AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Stille 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 Stille AB will offset losses from the drop in Stille 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 |
| Stille AB vs. C Rad AB | Stille AB vs. CellaVision AB | Stille AB vs. Boule Diagnostics AB | Stille AB vs. Genovis 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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