Correlation Between OmniAb and XTL Biopharmaceutica

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

Diversification Opportunities for OmniAb and XTL Biopharmaceutica

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between OmniAb and XTL is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding OmniAb Inc and XTL Biopharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals and OmniAb 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 OmniAb Inc 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 OmniAb i.e., OmniAb and XTL Biopharmaceutica go up and down completely randomly.

Pair Corralation between OmniAb and XTL Biopharmaceutica

Given the investment horizon of 90 days OmniAb Inc is expected to under-perform the XTL Biopharmaceutica. But the stock apears to be less risky and, when comparing its historical volatility, OmniAb Inc is 2.51 times less risky than XTL Biopharmaceutica. The stock trades about -0.04 of its potential returns per unit of risk. The XTL Biopharmaceuticals Ltd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  98.00  in XTL Biopharmaceuticals Ltd on September 7, 2025 and sell it today you would lose (11.00) from holding XTL Biopharmaceuticals Ltd or give up 11.22% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

OmniAb Inc  vs.  XTL Biopharmaceuticals Ltd

 Performance 
       Timeline  
OmniAb Inc 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in OmniAb Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent fundamental drivers, OmniAb demonstrated 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 fragile performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

OmniAb and XTL Biopharmaceutica Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OmniAb and XTL Biopharmaceutica

The main advantage of trading using opposite OmniAb and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OmniAb 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 OmniAb Inc 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.
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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