Correlation Between XOMA Corp and Sio Gene
Can any of the company-specific risk be diversified away by investing in both XOMA Corp and Sio Gene 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 Sio Gene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOMA Corp and Sio Gene Therapies, you can compare the effects of market volatilities on XOMA Corp and Sio Gene 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 Sio Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOMA Corp and Sio Gene.
Diversification Opportunities for XOMA Corp and Sio Gene
Pay attention - limited upside
The 3 months correlation between XOMA and Sio is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding XOMA Corp and Sio Gene Therapies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sio Gene Therapies 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 Sio Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sio Gene Therapies has no effect on the direction of XOMA Corp i.e., XOMA Corp and Sio Gene go up and down completely randomly.
Pair Corralation between XOMA Corp and Sio Gene
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 | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
XOMA Corp vs. Sio Gene Therapies
Performance |
| Timeline |
| XOMA Corp |
| Sio Gene Therapies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XOMA Corp and Sio Gene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOMA Corp and Sio Gene
The main advantage of trading using opposite XOMA Corp and Sio Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOMA Corp position performs unexpectedly, Sio Gene 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 Sio Gene will offset losses from the drop in Sio Gene's long position.| XOMA Corp vs. Werewolf Therapeutics | XOMA Corp vs. Edgewise Therapeutics | XOMA Corp vs. Celcuity LLC | XOMA Corp vs. C4 Therapeutics |
| Sio Gene vs. CytomX Therapeutics | Sio Gene vs. Assembly Biosciences | Sio Gene vs. Instil Bio | Sio Gene vs. Nuvation Bio |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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