Correlation Between Lixte Biotechnology and CannBioRx Life
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology and CannBioRx Life 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 Lixte Biotechnology and CannBioRx Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lixte Biotechnology Holdings and CannBioRx Life Sciences, you can compare the effects of market volatilities on Lixte Biotechnology and CannBioRx Life 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 Lixte Biotechnology with a short position of CannBioRx Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and CannBioRx Life.
Diversification Opportunities for Lixte Biotechnology and CannBioRx Life
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lixte and CannBioRx is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and CannBioRx Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannBioRx Life Sciences and Lixte Biotechnology 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 Lixte Biotechnology Holdings are associated (or correlated) with CannBioRx Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannBioRx Life Sciences has no effect on the direction of Lixte Biotechnology i.e., Lixte Biotechnology and CannBioRx Life go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and CannBioRx Life
Assuming the 90 days horizon Lixte Biotechnology is expected to generate 1.69 times less return on investment than CannBioRx Life. But when comparing it to its historical volatility, Lixte Biotechnology Holdings is 1.19 times less risky than CannBioRx Life. It trades about 0.13 of its potential returns per unit of risk. CannBioRx Life Sciences is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.94 in CannBioRx Life Sciences on June 3, 2025 and sell it today you would earn a total of 42.06 from holding CannBioRx Life Sciences or generate 4474.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.13% |
| Values | Daily Returns |
Lixte Biotechnology Holdings vs. CannBioRx Life Sciences
Performance |
| Timeline |
| Lixte Biotechnology |
| CannBioRx Life Sciences |
Risk-Adjusted Performance
Good
Weak | Strong |
Lixte Biotechnology and CannBioRx Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixte Biotechnology and CannBioRx Life
The main advantage of trading using opposite Lixte Biotechnology and CannBioRx Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology position performs unexpectedly, CannBioRx Life 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 CannBioRx Life will offset losses from the drop in CannBioRx Life's long position.| Lixte Biotechnology vs. Dermata Therapeutics Warrant | Lixte Biotechnology vs. Reviva Pharmaceuticals Holdings |
| CannBioRx Life vs. Lixte Biotechnology Holdings | CannBioRx Life vs. Dermata Therapeutics Warrant | CannBioRx Life vs. 180 Life Sciences | CannBioRx Life vs. Reviva Pharmaceuticals Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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