Correlation Between OLIPASS and PanGen Biotech
Can any of the company-specific risk be diversified away by investing in both OLIPASS and PanGen Biotech 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 OLIPASS and PanGen Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OLIPASS and PanGen Biotech, you can compare the effects of market volatilities on OLIPASS and PanGen Biotech 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 OLIPASS with a short position of PanGen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of OLIPASS and PanGen Biotech.
Diversification Opportunities for OLIPASS and PanGen Biotech
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OLIPASS and PanGen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding OLIPASS and PanGen Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PanGen Biotech and OLIPASS 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 OLIPASS are associated (or correlated) with PanGen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PanGen Biotech has no effect on the direction of OLIPASS i.e., OLIPASS and PanGen Biotech go up and down completely randomly.
Pair Corralation between OLIPASS and PanGen Biotech
Assuming the 90 days trading horizon OLIPASS is expected to generate 0.95 times more return on investment than PanGen Biotech. However, OLIPASS is 1.05 times less risky than PanGen Biotech. It trades about 0.27 of its potential returns per unit of risk. PanGen Biotech is currently generating about 0.18 per unit of risk. If you would invest 471,000 in OLIPASS on August 30, 2024 and sell it today you would earn a total of 168,000 from holding OLIPASS or generate 35.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
OLIPASS vs. PanGen Biotech
Performance |
| Timeline |
| OLIPASS |
| PanGen Biotech |
OLIPASS and PanGen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OLIPASS and PanGen Biotech
The main advantage of trading using opposite OLIPASS and PanGen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OLIPASS position performs unexpectedly, PanGen Biotech 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 PanGen Biotech will offset losses from the drop in PanGen Biotech's long position.| OLIPASS vs. Samsung Biologics Co | OLIPASS vs. Sk Biopharmaceuticals Co | OLIPASS vs. ABL Bio | OLIPASS vs. Green Cross Lab |
| PanGen Biotech vs. Youngchang Chemical Co | PanGen Biotech vs. Hyundai Home Shopping | PanGen Biotech vs. Namhae Chemical | PanGen Biotech vs. Cuckoo Homesys Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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