Correlation Between XTL Biopharmaceutica and BOS Better
Can any of the company-specific risk be diversified away by investing in both XTL Biopharmaceutica and BOS Better 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 BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTL Biopharmaceuticals Ltd and BOS Better Online, you can compare the effects of market volatilities on XTL Biopharmaceutica and BOS Better 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 BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTL Biopharmaceutica and BOS Better.
Diversification Opportunities for XTL Biopharmaceutica and BOS Better
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XTL and BOS is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding XTL Biopharmaceuticals Ltd and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online 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 Ltd are associated (or correlated) with BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of XTL Biopharmaceutica i.e., XTL Biopharmaceutica and BOS Better go up and down completely randomly.
Pair Corralation between XTL Biopharmaceutica and BOS Better
Given the investment horizon of 90 days XTL Biopharmaceuticals Ltd is expected to under-perform the BOS Better. In addition to that, XTL Biopharmaceutica is 6.5 times more volatile than BOS Better Online. It trades about -0.03 of its total potential returns per unit of risk. BOS Better Online is currently generating about 0.26 per unit of volatility. If you would invest 295.00 in BOS Better Online on August 30, 2024 and sell it today you would earn a total of 43.00 from holding BOS Better Online or generate 14.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTL Biopharmaceuticals Ltd vs. BOS Better Online
Performance |
| Timeline |
| XTL Biopharmaceuticals |
| BOS Better Online |
XTL Biopharmaceutica and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTL Biopharmaceutica and BOS Better
The main advantage of trading using opposite XTL Biopharmaceutica and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTL Biopharmaceutica position performs unexpectedly, BOS Better 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 BOS Better will offset losses from the drop in BOS Better's long position.| XTL Biopharmaceutica vs. Benitec Biopharma Ltd | XTL Biopharmaceutica vs. Xenetic Biosciences | XTL Biopharmaceutica vs. ProPhase Labs | XTL Biopharmaceutica vs. BOS Better Online |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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