Correlation Between Xintela AB and Vicore Pharma

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

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

Diversification Opportunities for Xintela AB and Vicore Pharma

0.61

Correlation Coefficient

Xintela AB  Vicore Pharma

Poor diversification

The 3 months correlation between Xintela and Vicore is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xintela AB and Vicore Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicore Pharma Holding and Xintela AB 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 Xintela AB are associated (or correlated) with Vicore Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicore Pharma Holding has no effect on the direction of Xintela AB i.e., Xintela AB and Vicore Pharma go up and down completely randomly.

Pair Corralation between Xintela AB and Vicore Pharma

Assuming the 90 days trading horizon Xintela AB is expected to generate 1.34 times more return on investment than Vicore Pharma. However, Xintela AB is 1.34 times more volatile than Vicore Pharma Holding. It trades about 0.56 of its potential returns per unit of risk. Vicore Pharma Holding is currently generating about 0.5 per unit of risk. If you would invest  26.00  in Xintela AB on October 10, 2024 and sell it today you would earn a total of  14.00  from holding Xintela AB or generate 53.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.12%
Values	Daily Returns

Xintela AB  vs.  Vicore Pharma Holding

Xintela AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xintela AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Vicore Pharma Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vicore Pharma Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vicore Pharma unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xintela AB and Vicore Pharma

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

The idea behind Xintela AB and Vicore Pharma Holding 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.