Correlation Between Jiangsu GDK and XTL Biopharmaceutica

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jiangsu GDK and XTL Biopharmaceutica 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 Jiangsu GDK and XTL Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiangsu GDK Biotechnology and XTL Biopharmaceuticals Ltd, you can compare the effects of market volatilities on Jiangsu GDK and XTL Biopharmaceutica 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 Jiangsu GDK with a short position of XTL Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and XTL Biopharmaceutica.

Diversification Opportunities for Jiangsu GDK and XTL Biopharmaceutica

-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Jiangsu and XTL is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and XTL Biopharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals and Jiangsu GDK 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 Jiangsu GDK Biotechnology are associated (or correlated) with XTL Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTL Biopharmaceuticals has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and XTL Biopharmaceutica go up and down completely randomly.

Pair Corralation between Jiangsu GDK and XTL Biopharmaceutica

Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 0.61 times more return on investment than XTL Biopharmaceutica. However, Jiangsu GDK Biotechnology is 1.63 times less risky than XTL Biopharmaceutica. It trades about 0.19 of its potential returns per unit of risk. XTL Biopharmaceuticals Ltd is currently generating about -0.03 per unit of risk. If you would invest  1,705  in Jiangsu GDK Biotechnology on August 19, 2025 and sell it today you would earn a total of  1,098  from holding Jiangsu GDK Biotechnology or generate 64.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy92.19%
ValuesDaily Returns

Jiangsu GDK Biotechnology  vs.  XTL Biopharmaceuticals Ltd

 Performance 
       Timeline  
Jiangsu GDK Biotechnology 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jiangsu GDK Biotechnology are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jiangsu GDK sustained solid returns over the last few months and may actually be approaching a breakup point.
XTL Biopharmaceuticals 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days XTL Biopharmaceuticals Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jiangsu GDK and XTL Biopharmaceutica Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jiangsu GDK and XTL Biopharmaceutica

The main advantage of trading using opposite Jiangsu GDK and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, XTL Biopharmaceutica 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 XTL Biopharmaceutica will offset losses from the drop in XTL Biopharmaceutica's long position.
The idea behind Jiangsu GDK Biotechnology and XTL Biopharmaceuticals Ltd 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories