Correlation Between Lytix Biopharma and Xplora Technologies

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

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

Diversification Opportunities for Lytix Biopharma and Xplora Technologies

0.87

Correlation Coefficient

Lytix Biopharma  Xplora Technologies

Very poor diversification

The 3 months correlation between Lytix and Xplora is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lytix Biopharma AS and Xplora Technologies As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xplora Technologies and Lytix 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 Lytix Biopharma AS are associated (or correlated) with Xplora Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xplora Technologies has no effect on the direction of Lytix Biopharma i.e., Lytix Biopharma and Xplora Technologies go up and down completely randomly.

Pair Corralation between Lytix Biopharma and Xplora Technologies

Assuming the 90 days trading horizon Lytix Biopharma AS is expected to generate 2.03 times more return on investment than Xplora Technologies. However, Lytix Biopharma is 2.03 times more volatile than Xplora Technologies As. It trades about 0.23 of its potential returns per unit of risk. Xplora Technologies As is currently generating about 0.34 per unit of risk. If you would invest  518.00  in Lytix Biopharma AS on April 24, 2025 and sell it today you would earn a total of  440.00  from holding Lytix Biopharma AS or generate 84.94% return on investment over 90 days.

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

Lytix Biopharma AS  vs.  Xplora Technologies As

Lytix Biopharma AS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lytix Biopharma AS are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Lytix Biopharma displayed solid returns over the last few months and may actually be approaching a breakup point.

Xplora Technologies

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Xplora Technologies As are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Xplora Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lytix Biopharma and Xplora Technologies

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

The idea behind Lytix Biopharma AS and Xplora Technologies As 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.