Correlation Between Xintela AB and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Xintela AB and Xvivo Perfusion 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 Xintela AB and Xvivo Perfusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xintela AB and Xvivo Perfusion AB, you can compare the effects of market volatilities on Xintela AB and Xvivo Perfusion 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 Xintela AB with a short position of Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xintela AB and Xvivo Perfusion.
Diversification Opportunities for Xintela AB and Xvivo Perfusion
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xintela and Xvivo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xintela AB and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion AB and Xintela AB 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 Xintela AB are associated (or correlated) with Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Xintela AB i.e., Xintela AB and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Xintela AB and Xvivo Perfusion
Assuming the 90 days trading horizon Xintela AB is expected to under-perform the Xvivo Perfusion. In addition to that, Xintela AB is 2.37 times more volatile than Xvivo Perfusion AB. It trades about -0.26 of its total potential returns per unit of risk. Xvivo Perfusion AB is currently generating about -0.15 per unit of volatility. If you would invest 49,400 in Xvivo Perfusion AB on August 29, 2024 and sell it today you would lose (3,650) from holding Xvivo Perfusion AB or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xintela AB vs. Xvivo Perfusion AB
Performance |
| Timeline |
| Xintela AB |
| Xvivo Perfusion AB |
Xintela AB and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xintela AB and Xvivo Perfusion
The main advantage of trading using opposite Xintela AB and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xintela AB position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion's long position.The idea behind Xintela AB and Xvivo Perfusion AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Xvivo Perfusion vs. Vitrolife AB | Xvivo Perfusion vs. BioArctic AB | Xvivo Perfusion vs. CellaVision AB | Xvivo Perfusion vs. Invisio Communications 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |