Correlation Between Xbrane Biopharma and AcouSort

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

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

Diversification Opportunities for Xbrane Biopharma and AcouSort

-0.7

Correlation Coefficient

Xbrane Biopharma  AcouSort

Excellent diversification

The 3 months correlation between Xbrane and AcouSort is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xbrane Biopharma AB and AcouSort AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcouSort AB and Xbrane 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 Xbrane Biopharma AB are associated (or correlated) with AcouSort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcouSort AB has no effect on the direction of Xbrane Biopharma i.e., Xbrane Biopharma and AcouSort go up and down completely randomly.

Pair Corralation between Xbrane Biopharma and AcouSort

Assuming the 90 days trading horizon Xbrane Biopharma AB is expected to generate 2.13 times more return on investment than AcouSort. However, Xbrane Biopharma is 2.13 times more volatile than AcouSort AB. It trades about 0.12 of its potential returns per unit of risk. AcouSort AB is currently generating about -0.01 per unit of risk. 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	Weak
Accuracy	100.0%
Values	Daily Returns

Xbrane Biopharma AB  vs.  AcouSort AB

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.

AcouSort AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days AcouSort AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AcouSort is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Xbrane Biopharma and AcouSort

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

The idea behind Xbrane Biopharma AB and AcouSort 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.