Correlation Between Xbrane Biopharma and Saxlund Group
Can any of the company-specific risk be diversified away by investing in both Xbrane Biopharma and Saxlund Group 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 Saxlund Group 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 Saxlund Group AB, you can compare the effects of market volatilities on Xbrane Biopharma and Saxlund Group 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 Saxlund Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xbrane Biopharma and Saxlund Group.
Diversification Opportunities for Xbrane Biopharma and Saxlund Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xbrane and Saxlund is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and Saxlund Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saxlund Group AB 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 Saxlund Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saxlund Group AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and Saxlund Group go up and down completely randomly.
Pair Corralation between Xbrane Biopharma and Saxlund Group
Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to generate 0.92 times more return on investment than Saxlund Group. However, Xbrane Biopharma AB is 1.09 times less risky than Saxlund Group. It trades about 0.03 of its potential returns per unit of risk. Saxlund Group AB is currently generating about -0.08 per unit of risk. If you would invest 16.00 in Xbrane Biopharma AB on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Xbrane Biopharma AB or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xbrane Biopharma AB vs. Saxlund Group AB
Performance |
Timeline |
Xbrane Biopharma |
Saxlund Group AB |
Xbrane Biopharma and Saxlund Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xbrane Biopharma and Saxlund Group
The main advantage of trading using opposite Xbrane Biopharma and Saxlund Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xbrane Biopharma position performs unexpectedly, Saxlund Group 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 Saxlund Group will offset losses from the drop in Saxlund Group's long position.Xbrane Biopharma vs. Stille AB | Xbrane Biopharma vs. Midsona AB | Xbrane Biopharma vs. Precio Fishbone AB | Xbrane Biopharma vs. C Rad AB |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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