Correlation Between XOMA and Pulmatrix
Can any of the company-specific risk be diversified away by investing in both XOMA and Pulmatrix 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 and Pulmatrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOMA Corporation and Pulmatrix, you can compare the effects of market volatilities on XOMA and Pulmatrix 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 with a short position of Pulmatrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOMA and Pulmatrix.
Diversification Opportunities for XOMA and Pulmatrix
Average diversification
The 3 months correlation between XOMA and Pulmatrix is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding XOMA Corp. and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix and XOMA 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 Corporation are associated (or correlated) with Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of XOMA i.e., XOMA and Pulmatrix go up and down completely randomly.
Pair Corralation between XOMA and Pulmatrix
Assuming the 90 days horizon XOMA Corporation is expected to under-perform the Pulmatrix. But the preferred stock apears to be less risky and, when comparing its historical volatility, XOMA Corporation is 106.07 times less risky than Pulmatrix. The preferred stock trades about -0.2 of its potential returns per unit of risk. The Pulmatrix is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Pulmatrix on August 30, 2024 and sell it today you would earn a total of 516.00 from holding Pulmatrix or generate 236.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XOMA Corp. vs. Pulmatrix
Performance |
| Timeline |
| XOMA |
| Pulmatrix |
XOMA and Pulmatrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOMA and Pulmatrix
The main advantage of trading using opposite XOMA and Pulmatrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOMA position performs unexpectedly, Pulmatrix 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 Pulmatrix will offset losses from the drop in Pulmatrix's long position.The idea behind XOMA Corporation and Pulmatrix 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.| Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Akari Therapeutics PLC | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Bio Path Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |