Correlation Between Sumitomo Mitsui and X4 Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Sumitomo Mitsui and X4 Pharmaceuticals 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 Sumitomo Mitsui and X4 Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumitomo Mitsui Financial and X4 Pharmaceuticals, you can compare the effects of market volatilities on Sumitomo Mitsui and X4 Pharmaceuticals 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 Sumitomo Mitsui with a short position of X4 Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumitomo Mitsui and X4 Pharmaceuticals.
Diversification Opportunities for Sumitomo Mitsui and X4 Pharmaceuticals
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sumitomo and XFOR is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Mitsui Financial and X4 Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X4 Pharmaceuticals and Sumitomo Mitsui 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 Sumitomo Mitsui Financial are associated (or correlated) with X4 Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X4 Pharmaceuticals has no effect on the direction of Sumitomo Mitsui i.e., Sumitomo Mitsui and X4 Pharmaceuticals go up and down completely randomly.
Pair Corralation between Sumitomo Mitsui and X4 Pharmaceuticals
Assuming the 90 days horizon Sumitomo Mitsui Financial is expected to generate 0.46 times more return on investment than X4 Pharmaceuticals. However, Sumitomo Mitsui Financial is 2.16 times less risky than X4 Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. X4 Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 1,529 in Sumitomo Mitsui Financial on June 12, 2025 and sell it today you would earn a total of 1,269 from holding Sumitomo Mitsui Financial or generate 83.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.89% |
| Values | Daily Returns |
Sumitomo Mitsui Financial vs. X4 Pharmaceuticals
Performance |
| Timeline |
| Sumitomo Mitsui Financial |
| X4 Pharmaceuticals |
Sumitomo Mitsui and X4 Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumitomo Mitsui and X4 Pharmaceuticals
The main advantage of trading using opposite Sumitomo Mitsui and X4 Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumitomo Mitsui position performs unexpectedly, X4 Pharmaceuticals 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 X4 Pharmaceuticals will offset losses from the drop in X4 Pharmaceuticals' long position.| Sumitomo Mitsui vs. Agricultural Bank of | Sumitomo Mitsui vs. Bank of America | Sumitomo Mitsui vs. Bank of America | Sumitomo Mitsui vs. Banco Santander SA |
| X4 Pharmaceuticals vs. Terns Pharmaceuticals | X4 Pharmaceuticals vs. Day One Biopharmaceuticals | X4 Pharmaceuticals vs. PDS Biotechnology Corp | X4 Pharmaceuticals vs. Acumen Pharmaceuticals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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