Correlation Between Amedeo Air and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and Oncimmune Holdings 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 Amedeo Air and Oncimmune Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and Oncimmune Holdings plc, you can compare the effects of market volatilities on Amedeo Air and Oncimmune Holdings 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 Amedeo Air with a short position of Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Oncimmune Holdings.
Diversification Opportunities for Amedeo Air and Oncimmune Holdings
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amedeo and Oncimmune is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings plc and Amedeo Air 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 Amedeo Air Four are associated (or correlated) with Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Amedeo Air i.e., Amedeo Air and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Amedeo Air and Oncimmune Holdings
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 0.38 times more return on investment than Oncimmune Holdings. However, Amedeo Air Four is 2.63 times less risky than Oncimmune Holdings. It trades about 0.1 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about -0.23 per unit of risk. If you would invest 5,558 in Amedeo Air Four on October 22, 2024 and sell it today you would earn a total of 142.00 from holding Amedeo Air Four or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Amedeo Air Four |
| Oncimmune Holdings plc |
Amedeo Air and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Oncimmune Holdings
The main advantage of trading using opposite Amedeo Air and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Amedeo Air vs. URU Metals | Amedeo Air vs. Batm Advanced Communications | Amedeo Air vs. First Class Metals | Amedeo Air vs. Naked Wines plc |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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