Correlation Between Xenetic Biosciences and Immix Biopharma

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

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

Diversification Opportunities for Xenetic Biosciences and Immix Biopharma

-0.1

Correlation Coefficient

Xenetic Biosciences  Immix Biopharma

Good diversification

The 3 months correlation between Xenetic and Immix is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Xenetic Biosciences and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and Xenetic Biosciences 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 Xenetic Biosciences are associated (or correlated) with Immix Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immix Biopharma has no effect on the direction of Xenetic Biosciences i.e., Xenetic Biosciences and Immix Biopharma go up and down completely randomly.

Pair Corralation between Xenetic Biosciences and Immix Biopharma

Given the investment horizon of 90 days Xenetic Biosciences is expected to generate 0.78 times more return on investment than Immix Biopharma. However, Xenetic Biosciences is 1.28 times less risky than Immix Biopharma. It trades about 0.05 of its potential returns per unit of risk. Immix Biopharma is currently generating about 0.04 per unit of risk. If you would invest  387.00  in Xenetic Biosciences on September 3, 2024 and sell it today you would earn a total of  39.00  from holding Xenetic Biosciences or generate 10.08% return on investment over 90 days.

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

Xenetic Biosciences  vs.  Immix Biopharma

Xenetic Biosciences

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Xenetic Biosciences are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Xenetic Biosciences displayed solid returns over the last few months and may actually be approaching a breakup point.

Immix Biopharma

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady primary indicators, Immix Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xenetic Biosciences and Immix Biopharma

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

The idea behind Xenetic Biosciences and Immix Biopharma 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.