Correlation Between Xbrane Biopharma and Kollect On

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

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

Diversification Opportunities for Xbrane Biopharma and Kollect On

0.37

Correlation Coefficient

Xbrane Biopharma  Kollect On

Weak diversification

The 3 months correlation between Xbrane and Kollect is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Kollect on Demand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kollect on Demand and Xbrane Biopharma 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 Xbrane Biopharma AB are associated (or correlated) with Kollect On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kollect on Demand has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Kollect On go up and down completely randomly.

Pair Corralation between Xbrane Biopharma and Kollect On

Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to under-perform the Kollect On. In addition to that, Xbrane Biopharma is 1.41 times more volatile than Kollect on Demand. It trades about -0.1 of its total potential returns per unit of risk. Kollect on Demand is currently generating about 0.0 per unit of volatility. If you would invest  270.00  in Kollect on Demand on September 23, 2024 and sell it today you would lose (4.00) from holding Kollect on Demand or give up 1.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Xbrane Biopharma AB  vs.  Kollect on Demand

Xbrane Biopharma

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xbrane Biopharma AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Xbrane Biopharma may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Kollect on Demand

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kollect on Demand are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Kollect On unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xbrane Biopharma and Kollect On

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

The idea behind Xbrane Biopharma AB and Kollect on Demand 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.