Correlation Between Oneness Biotech and Panion BF
Can any of the company-specific risk be diversified away by investing in both Oneness Biotech and Panion BF 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 Oneness Biotech and Panion BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oneness Biotech Co and Panion BF Biotech, you can compare the effects of market volatilities on Oneness Biotech and Panion BF 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 Oneness Biotech with a short position of Panion BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneness Biotech and Panion BF.
Diversification Opportunities for Oneness Biotech and Panion BF
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oneness and Panion is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Oneness Biotech Co and Panion BF Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panion BF Biotech and Oneness Biotech 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 Oneness Biotech Co are associated (or correlated) with Panion BF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panion BF Biotech has no effect on the direction of Oneness Biotech i.e., Oneness Biotech and Panion BF go up and down completely randomly.
Pair Corralation between Oneness Biotech and Panion BF
Assuming the 90 days trading horizon Oneness Biotech Co is expected to under-perform the Panion BF. In addition to that, Oneness Biotech is 1.28 times more volatile than Panion BF Biotech. It trades about -0.08 of its total potential returns per unit of risk. Panion BF Biotech is currently generating about -0.06 per unit of volatility. If you would invest 15,809 in Panion BF Biotech on December 26, 2024 and sell it today you would lose (7,609) from holding Panion BF Biotech or give up 48.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oneness Biotech Co vs. Panion BF Biotech
Performance |
| Timeline |
| Oneness Biotech |
| Panion BF Biotech |
Oneness Biotech and Panion BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oneness Biotech and Panion BF
The main advantage of trading using opposite Oneness Biotech and Panion BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneness Biotech position performs unexpectedly, Panion BF 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 Panion BF will offset losses from the drop in Panion BF's long position.| Oneness Biotech vs. Microbio Co | Oneness Biotech vs. Medigen Vaccine Biologics | Oneness Biotech vs. OBI Pharma | Oneness Biotech vs. Medigen Biotechnology |
| Panion BF vs. Adimmune Corp | Panion BF vs. Abnova Taiwan Corp | Panion BF vs. Chunghwa Chemical Synthesis | Panion BF vs. Formosa Laboratories |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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