Correlation Between XOMA Corp and TRACON Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both XOMA Corp and TRACON Pharmaceuticals 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 TRACON Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOMA Corp and TRACON Pharmaceuticals, you can compare the effects of market volatilities on XOMA Corp and TRACON Pharmaceuticals 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 TRACON Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOMA Corp and TRACON Pharmaceuticals.
Diversification Opportunities for XOMA Corp and TRACON Pharmaceuticals
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between XOMA and TRACON is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding XOMA Corp and TRACON Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRACON Pharmaceuticals 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 TRACON Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRACON Pharmaceuticals has no effect on the direction of XOMA Corp i.e., XOMA Corp and TRACON Pharmaceuticals go up and down completely randomly.
Pair Corralation between XOMA Corp and TRACON Pharmaceuticals
If you would invest 2,692 in XOMA Corp on August 25, 2024 and sell it today you would earn a total of 328.00 from holding XOMA Corp or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.22% |
| Values | Daily Returns |
XOMA Corp vs. TRACON Pharmaceuticals
Performance |
| Timeline |
| XOMA Corp |
| TRACON Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XOMA Corp and TRACON Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOMA Corp and TRACON Pharmaceuticals
The main advantage of trading using opposite XOMA Corp and TRACON Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOMA Corp position performs unexpectedly, TRACON Pharmaceuticals 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 TRACON Pharmaceuticals will offset losses from the drop in TRACON Pharmaceuticals' long position.| XOMA Corp vs. Werewolf Therapeutics | XOMA Corp vs. Edgewise Therapeutics | XOMA Corp vs. Celcuity LLC | XOMA Corp vs. C4 Therapeutics |
| TRACON Pharmaceuticals vs. Rezolute | TRACON Pharmaceuticals vs. XOMA Corp | TRACON Pharmaceuticals vs. Vincerx Pharma | TRACON Pharmaceuticals vs. Histogen |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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