Correlation Between Absci Corp and Ocugen
Can any of the company-specific risk be diversified away by investing in both Absci Corp and Ocugen 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 Ocugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absci Corp and Ocugen Inc, you can compare the effects of market volatilities on Absci Corp and Ocugen 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 Ocugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absci Corp and Ocugen.
Diversification Opportunities for Absci Corp and Ocugen
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Absci and Ocugen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Absci Corp and Ocugen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocugen 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 Ocugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocugen Inc has no effect on the direction of Absci Corp i.e., Absci Corp and Ocugen go up and down completely randomly.
Pair Corralation between Absci Corp and Ocugen
Given the investment horizon of 90 days Absci Corp is expected to under-perform the Ocugen. In addition to that, Absci Corp is 1.14 times more volatile than Ocugen Inc. It trades about -0.1 of its total potential returns per unit of risk. Ocugen Inc is currently generating about 0.01 per unit of volatility. If you would invest 99.00 in Ocugen Inc on August 31, 2024 and sell it today you would lose (2.00) from holding Ocugen Inc or give up 2.02% 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. Ocugen Inc
Performance |
| Timeline |
| Absci Corp |
| Ocugen Inc |
Absci Corp and Ocugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absci Corp and Ocugen
The main advantage of trading using opposite Absci Corp and Ocugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absci Corp position performs unexpectedly, Ocugen 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 Ocugen will offset losses from the drop in Ocugen's long position.| Absci Corp vs. CytomX Therapeutics | Absci Corp vs. Instil Bio | Absci Corp vs. Spero Therapeutics | Absci Corp vs. Assembly Biosciences |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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