Correlation Between Xeris Pharmaceuticals and CryoLife

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

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

Diversification Opportunities for Xeris Pharmaceuticals and CryoLife

0.0

Correlation Coefficient

Xeris Pharmaceuticals  CryoLife

Pay attention - limited upside

The 3 months correlation between Xeris and CryoLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xeris Pharmaceuticals and CryoLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoLife and Xeris Pharmaceuticals 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 Xeris Pharmaceuticals are associated (or correlated) with CryoLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoLife has no effect on the direction of Xeris Pharmaceuticals i.e., Xeris Pharmaceuticals and CryoLife go up and down completely randomly.

Pair Corralation between Xeris Pharmaceuticals and CryoLife

If you would invest (100.00) in CryoLife on February 27, 2024 and sell it today you would earn a total of  100.00  from holding CryoLife or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Xeris Pharmaceuticals  vs.  CryoLife

Xeris Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xeris Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CryoLife

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CryoLife has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, CryoLife is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Xeris Pharmaceuticals and CryoLife

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

The idea behind Xeris Pharmaceuticals and CryoLife 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.