Correlation Between XTL Biopharmaceutica and Intercure

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

By analyzing existing cross correlation between XTL Biopharmaceuticals Ltd and Intercure, you can compare the effects of market volatilities on XTL Biopharmaceutica and Intercure 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 XTL Biopharmaceutica with a short position of Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTL Biopharmaceutica and Intercure.

Diversification Opportunities for XTL Biopharmaceutica and Intercure

-0.22

Correlation Coefficient

XTL Biopharmaceutica  Intercure

Very good diversification

The 3 months correlation between XTL and Intercure is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding XTL Biopharmaceuticals Ltd and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and XTL Biopharmaceutica 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 XTL Biopharmaceuticals Ltd are associated (or correlated) with Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of XTL Biopharmaceutica i.e., XTL Biopharmaceutica and Intercure go up and down completely randomly.

Pair Corralation between XTL Biopharmaceutica and Intercure

Given the investment horizon of 90 days XTL Biopharmaceuticals Ltd is expected to under-perform the Intercure. In addition to that, XTL Biopharmaceutica is 1.78 times more volatile than Intercure. It trades about -0.18 of its total potential returns per unit of risk. Intercure is currently generating about -0.04 per unit of volatility. If you would invest  56,900  in Intercure on December 27, 2024 and sell it today you would lose (3,810) from holding Intercure or give up 6.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	83.33%
Values	Daily Returns

XTL Biopharmaceuticals Ltd  vs.  Intercure

XTL Biopharmaceuticals

Risk-Adjusted Performance

Very Weak

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

Intercure

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intercure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with XTL Biopharmaceutica and Intercure

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

The idea behind XTL Biopharmaceuticals Ltd and Intercure 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..