Correlation Between XTL Biopharmaceutica and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both XTL Biopharmaceutica and Xenetic Biosciences 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 Xenetic Biosciences 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 Xenetic Biosciences, you can compare the effects of market volatilities on XTL Biopharmaceutica and Xenetic Biosciences 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 Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTL Biopharmaceutica and Xenetic Biosciences.
Diversification Opportunities for XTL Biopharmaceutica and Xenetic Biosciences
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between XTL and Xenetic is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding XTL Biopharmaceuticals Ltd and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences 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 Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of XTL Biopharmaceutica i.e., XTL Biopharmaceutica and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between XTL Biopharmaceutica and Xenetic Biosciences
Given the investment horizon of 90 days XTL Biopharmaceuticals Ltd is expected to under-perform the Xenetic Biosciences. In addition to that, XTL Biopharmaceutica is 1.7 times more volatile than Xenetic Biosciences. It trades about -0.03 of its total potential returns per unit of risk. Xenetic Biosciences is currently generating about 0.01 per unit of volatility. If you would invest 432.00 in Xenetic Biosciences on August 30, 2024 and sell it today you would lose (12.00) from holding Xenetic Biosciences or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
XTL Biopharmaceuticals Ltd vs. Xenetic Biosciences
Performance |
| Timeline |
| XTL Biopharmaceuticals |
| Xenetic Biosciences |
XTL Biopharmaceutica and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTL Biopharmaceutica and Xenetic Biosciences
The main advantage of trading using opposite XTL Biopharmaceutica and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTL Biopharmaceutica position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.| XTL Biopharmaceutica vs. Benitec Biopharma Ltd | XTL Biopharmaceutica vs. Xenetic Biosciences | XTL Biopharmaceutica vs. ProPhase Labs | XTL Biopharmaceutica vs. BOS Better Online |
| Xenetic Biosciences vs. Ikena Oncology | Xenetic Biosciences vs. Eliem Therapeutics | Xenetic Biosciences vs. HCW Biologics | Xenetic Biosciences vs. RenovoRx |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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