Correlation Between XOMA Corp and Histogen
Can any of the company-specific risk be diversified away by investing in both XOMA Corp and Histogen 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 XOMA Corp and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOMA Corp and Histogen, you can compare the effects of market volatilities on XOMA Corp and Histogen 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 XOMA Corp with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOMA Corp and Histogen.
Diversification Opportunities for XOMA Corp and Histogen
Very good diversification
The 3 months correlation between XOMA and Histogen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding XOMA Corp and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and XOMA Corp 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 XOMA Corp are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of XOMA Corp i.e., XOMA Corp and Histogen go up and down completely randomly.
Pair Corralation between XOMA Corp and Histogen
Given the investment horizon of 90 days XOMA Corp is expected to generate 0.17 times more return on investment than Histogen. However, XOMA Corp is 5.82 times less risky than Histogen. It trades about 0.16 of its potential returns per unit of risk. Histogen is currently generating about -0.3 per unit of risk. If you would invest 3,022 in XOMA Corp on August 29, 2024 and sell it today you would earn a total of 366.00 from holding XOMA Corp or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
XOMA Corp vs. Histogen
Performance |
| Timeline |
| XOMA Corp |
| Histogen |
XOMA Corp and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOMA Corp and Histogen
The main advantage of trading using opposite XOMA Corp and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOMA Corp position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| XOMA Corp vs. Werewolf Therapeutics | XOMA Corp vs. Edgewise Therapeutics | XOMA Corp vs. Celcuity LLC | XOMA Corp vs. C4 Therapeutics |
| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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