Correlation Between OBI Pharma and Medigen Vaccine
Can any of the company-specific risk be diversified away by investing in both OBI Pharma and Medigen Vaccine 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 OBI Pharma and Medigen Vaccine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OBI Pharma and Medigen Vaccine Biologics, you can compare the effects of market volatilities on OBI Pharma and Medigen Vaccine 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 OBI Pharma with a short position of Medigen Vaccine. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBI Pharma and Medigen Vaccine.
Diversification Opportunities for OBI Pharma and Medigen Vaccine
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OBI and Medigen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding OBI Pharma and Medigen Vaccine Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigen Vaccine Biologics and OBI Pharma 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 OBI Pharma are associated (or correlated) with Medigen Vaccine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigen Vaccine Biologics has no effect on the direction of OBI Pharma i.e., OBI Pharma and Medigen Vaccine go up and down completely randomly.
Pair Corralation between OBI Pharma and Medigen Vaccine
Assuming the 90 days trading horizon OBI Pharma is expected to generate 0.85 times more return on investment than Medigen Vaccine. However, OBI Pharma is 1.18 times less risky than Medigen Vaccine. It trades about 0.0 of its potential returns per unit of risk. Medigen Vaccine Biologics is currently generating about -0.05 per unit of risk. If you would invest 7,010 in OBI Pharma on August 31, 2024 and sell it today you would lose (820.00) from holding OBI Pharma or give up 11.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBI Pharma vs. Medigen Vaccine Biologics
Performance |
| Timeline |
| OBI Pharma |
| Medigen Vaccine Biologics |
OBI Pharma and Medigen Vaccine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBI Pharma and Medigen Vaccine
The main advantage of trading using opposite OBI Pharma and Medigen Vaccine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBI Pharma position performs unexpectedly, Medigen Vaccine 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 Medigen Vaccine will offset losses from the drop in Medigen Vaccine's long position.| OBI Pharma vs. TaiMed Biologics | OBI Pharma vs. PharmaEngine | OBI Pharma vs. Medigen Biotechnology | OBI Pharma vs. TTY Biopharm Co |
| Medigen Vaccine vs. Evergreen Marine Corp | Medigen Vaccine vs. Yang Ming Marine | Medigen Vaccine vs. Eva Airways Corp | Medigen Vaccine vs. Wan Hai Lines |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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