Correlation Between XTL Biopharmaceutica and Danel
Can any of the company-specific risk be diversified away by investing in both XTL Biopharmaceutica and Danel 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 XTL Biopharmaceutica and Danel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTL Biopharmaceuticals and Danel, you can compare the effects of market volatilities on XTL Biopharmaceutica and Danel 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 XTL Biopharmaceutica with a short position of Danel. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTL Biopharmaceutica and Danel.
Diversification Opportunities for XTL Biopharmaceutica and Danel
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XTL and Danel is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding XTL Biopharmaceuticals and Danel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danel and XTL Biopharmaceutica 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 XTL Biopharmaceuticals are associated (or correlated) with Danel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danel has no effect on the direction of XTL Biopharmaceutica i.e., XTL Biopharmaceutica and Danel go up and down completely randomly.
Pair Corralation between XTL Biopharmaceutica and Danel
Assuming the 90 days trading horizon XTL Biopharmaceuticals is expected to generate 4.45 times more return on investment than Danel. However, XTL Biopharmaceutica is 4.45 times more volatile than Danel. It trades about 0.05 of its potential returns per unit of risk. Danel is currently generating about 0.09 per unit of risk. If you would invest 460.00 in XTL Biopharmaceuticals on September 1, 2024 and sell it today you would earn a total of 190.00 from holding XTL Biopharmaceuticals or generate 41.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTL Biopharmaceuticals vs. Danel
Performance |
| Timeline |
| XTL Biopharmaceuticals |
| Danel |
XTL Biopharmaceutica and Danel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTL Biopharmaceutica and Danel
The main advantage of trading using opposite XTL Biopharmaceutica and Danel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTL Biopharmaceutica position performs unexpectedly, Danel 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 Danel will offset losses from the drop in Danel's long position.| XTL Biopharmaceutica vs. XTL Biopharmaceuticals Ltd | XTL Biopharmaceutica vs. Intercure | XTL Biopharmaceutica vs. BioLine RX | XTL Biopharmaceutica vs. Foresight Autonomous Holdings |
| Danel vs. Hilan | Danel vs. Fattal 1998 Holdings | Danel vs. Matrix | Danel vs. Bezeq Israeli Telecommunication |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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