Correlation Between Sprint Bioscience and Xbrane Biopharma

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

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

Diversification Opportunities for Sprint Bioscience and Xbrane Biopharma

-0.58

Correlation Coefficient

Sprint Bioscience  Xbrane Biopharma

Excellent diversification

The 3 months correlation between Sprint and Xbrane is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sprint Bioscience AB and Xbrane Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xbrane Biopharma and Sprint Bioscience 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 Sprint Bioscience AB are associated (or correlated) with Xbrane Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xbrane Biopharma has no effect on the direction of Sprint Bioscience i.e., Sprint Bioscience and Xbrane Biopharma go up and down completely randomly.

Pair Corralation between Sprint Bioscience and Xbrane Biopharma

Assuming the 90 days trading horizon Sprint Bioscience AB is expected to under-perform the Xbrane Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Sprint Bioscience AB is 1.38 times less risky than Xbrane Biopharma. The stock trades about -0.03 of its potential returns per unit of risk. The Xbrane Biopharma AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  19.00  in Xbrane Biopharma AB on April 24, 2025 and sell it today you would earn a total of  10.00  from holding Xbrane Biopharma AB or generate 52.63% return on investment over 90 days.

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

Sprint Bioscience AB  vs.  Xbrane Biopharma AB

Sprint Bioscience

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sprint Bioscience AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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.

Xbrane Biopharma

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Xbrane Biopharma AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Xbrane Biopharma sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sprint Bioscience and Xbrane Biopharma

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

The idea behind Sprint Bioscience AB and Xbrane Biopharma AB 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.