Correlation Between Aditxt and XOMA
Can any of the company-specific risk be diversified away by investing in both Aditxt and XOMA 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 Aditxt and XOMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aditxt Inc and XOMA Corporation, you can compare the effects of market volatilities on Aditxt and XOMA 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 Aditxt with a short position of XOMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aditxt and XOMA.
Diversification Opportunities for Aditxt and XOMA
Pay attention - limited upside
The 3 months correlation between Aditxt and XOMA is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Aditxt Inc and XOMA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XOMA and Aditxt 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 Aditxt Inc are associated (or correlated) with XOMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XOMA has no effect on the direction of Aditxt i.e., Aditxt and XOMA go up and down completely randomly.
Pair Corralation between Aditxt and XOMA
Given the investment horizon of 90 days Aditxt Inc is expected to under-perform the XOMA. In addition to that, Aditxt is 36.84 times more volatile than XOMA Corporation. It trades about -0.23 of its total potential returns per unit of risk. XOMA Corporation is currently generating about 0.13 per unit of volatility. If you would invest 2,481 in XOMA Corporation on December 5, 2024 and sell it today you would earn a total of 59.00 from holding XOMA Corporation or generate 2.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Aditxt Inc vs. XOMA Corp.
Performance |
Timeline |
Aditxt Inc |
XOMA |
Aditxt and XOMA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aditxt and XOMA
The main advantage of trading using opposite Aditxt and XOMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aditxt position performs unexpectedly, XOMA 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 XOMA will offset losses from the drop in XOMA's long position.Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences | Aditxt vs. Palisade Bio |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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