Correlation Between Vicore Pharma and Xbrane Biopharma

Can any of the company-specific risk be diversified away by investing in both Vicore Pharma and Xbrane Biopharma 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 Vicore Pharma and Xbrane Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vicore Pharma Holding and Xbrane Biopharma AB, you can compare the effects of market volatilities on Vicore Pharma and Xbrane Biopharma 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 Vicore Pharma with a short position of Xbrane Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vicore Pharma and Xbrane Biopharma.

Diversification Opportunities for Vicore Pharma and Xbrane Biopharma

-0.2

Correlation Coefficient

Vicore Pharma  Xbrane Biopharma

Good diversification

The 3 months correlation between Vicore and Xbrane is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Vicore Pharma Holding and Xbrane Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xbrane Biopharma and Vicore Pharma 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 Vicore Pharma Holding are associated (or correlated) with Xbrane Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xbrane Biopharma has no effect on the direction of Vicore Pharma i.e., Vicore Pharma and Xbrane Biopharma go up and down completely randomly.

Pair Corralation between Vicore Pharma and Xbrane Biopharma

Assuming the 90 days trading horizon Vicore Pharma Holding is expected to generate 0.76 times more return on investment than Xbrane Biopharma. However, Vicore Pharma Holding is 1.32 times less risky than Xbrane Biopharma. It trades about 0.04 of its potential returns per unit of risk. Xbrane Biopharma AB is currently generating about -0.08 per unit of risk. If you would invest  784.00  in Vicore Pharma Holding on November 29, 2024 and sell it today you would earn a total of  36.00  from holding Vicore Pharma Holding or generate 4.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vicore Pharma Holding  vs.  Xbrane Biopharma AB

Vicore Pharma Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vicore Pharma Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vicore Pharma may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Xbrane Biopharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xbrane Biopharma AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Vicore Pharma and Xbrane Biopharma

The main advantage of trading using opposite Vicore Pharma and Xbrane Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vicore Pharma position performs unexpectedly, Xbrane Biopharma 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 Xbrane Biopharma will offset losses from the drop in Xbrane Biopharma's long position.

The idea behind Vicore Pharma Holding and Xbrane Biopharma AB 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.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.