Correlation Between Xlife Sciences and Liechtensteinische
Can any of the company-specific risk be diversified away by investing in both Xlife Sciences and Liechtensteinische 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 Xlife Sciences and Liechtensteinische into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xlife Sciences AG and Liechtensteinische Landesbank AG, you can compare the effects of market volatilities on Xlife Sciences and Liechtensteinische 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 Xlife Sciences with a short position of Liechtensteinische. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xlife Sciences and Liechtensteinische.
Diversification Opportunities for Xlife Sciences and Liechtensteinische
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xlife and Liechtensteinische is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xlife Sciences AG and Liechtensteinische Landesbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liechtensteinische and Xlife Sciences 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 Xlife Sciences AG are associated (or correlated) with Liechtensteinische. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liechtensteinische has no effect on the direction of Xlife Sciences i.e., Xlife Sciences and Liechtensteinische go up and down completely randomly.
Pair Corralation between Xlife Sciences and Liechtensteinische
Assuming the 90 days trading horizon Xlife Sciences AG is expected to under-perform the Liechtensteinische. In addition to that, Xlife Sciences is 3.6 times more volatile than Liechtensteinische Landesbank AG. It trades about -0.01 of its total potential returns per unit of risk. Liechtensteinische Landesbank AG is currently generating about 0.05 per unit of volatility. If you would invest 5,733 in Liechtensteinische Landesbank AG on November 3, 2024 and sell it today you would earn a total of 1,587 from holding Liechtensteinische Landesbank AG or generate 27.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Xlife Sciences AG vs. Liechtensteinische Landesbank
Performance |
| Timeline |
| Xlife Sciences AG |
| Liechtensteinische |
Xlife Sciences and Liechtensteinische Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xlife Sciences and Liechtensteinische
The main advantage of trading using opposite Xlife Sciences and Liechtensteinische positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xlife Sciences position performs unexpectedly, Liechtensteinische 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 Liechtensteinische will offset losses from the drop in Liechtensteinische's long position.| Xlife Sciences vs. HBM Healthcare Investments | Xlife Sciences vs. Glarner Kantonalbank | Xlife Sciences vs. BB Biotech AG | Xlife Sciences vs. Cicor Technologies |
| Liechtensteinische vs. VP Bank AG | Liechtensteinische vs. Valiant Holding AG | Liechtensteinische vs. Glarner Kantonalbank | Liechtensteinische vs. Berner Kantonalbank AG |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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