Correlation Between Absci Corp and OmniAb
Can any of the company-specific risk be diversified away by investing in both Absci Corp and OmniAb 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 Absci Corp and OmniAb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absci Corp and OmniAb Inc, you can compare the effects of market volatilities on Absci Corp and OmniAb 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 Absci Corp with a short position of OmniAb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absci Corp and OmniAb.
Diversification Opportunities for Absci Corp and OmniAb
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Absci and OmniAb is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Absci Corp and OmniAb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OmniAb Inc and Absci Corp 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 Absci Corp are associated (or correlated) with OmniAb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OmniAb Inc has no effect on the direction of Absci Corp i.e., Absci Corp and OmniAb go up and down completely randomly.
Pair Corralation between Absci Corp and OmniAb
Given the investment horizon of 90 days Absci Corp is expected to under-perform the OmniAb. In addition to that, Absci Corp is 1.56 times more volatile than OmniAb Inc. It trades about -0.1 of its total potential returns per unit of risk. OmniAb Inc is currently generating about -0.04 per unit of volatility. If you would invest 423.00 in OmniAb Inc on August 31, 2024 and sell it today you would lose (33.00) from holding OmniAb Inc or give up 7.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
Absci Corp vs. OmniAb Inc
Performance |
| Timeline |
| Absci Corp |
| OmniAb Inc |
Absci Corp and OmniAb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absci Corp and OmniAb
The main advantage of trading using opposite Absci Corp and OmniAb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absci Corp position performs unexpectedly, OmniAb 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 OmniAb will offset losses from the drop in OmniAb's long position.| Absci Corp vs. CytomX Therapeutics | Absci Corp vs. Instil Bio | Absci Corp vs. Spero Therapeutics | Absci Corp vs. Assembly Biosciences |
| OmniAb vs. Legend Biotech Corp | OmniAb vs. Verona Pharma PLC | OmniAb vs. Ideaya Biosciences | OmniAb vs. Iteos Therapeutics |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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