Correlation Between Aeterna Zentaris and Ocugen
Can any of the company-specific risk be diversified away by investing in both Aeterna Zentaris 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 Aeterna Zentaris and Ocugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeterna Zentaris and Ocugen Inc, you can compare the effects of market volatilities on Aeterna Zentaris 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 Aeterna Zentaris with a short position of Ocugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeterna Zentaris and Ocugen.
Diversification Opportunities for Aeterna Zentaris and Ocugen
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aeterna and Ocugen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Aeterna Zentaris and Ocugen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocugen Inc and Aeterna Zentaris 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 Aeterna Zentaris 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 Aeterna Zentaris i.e., Aeterna Zentaris and Ocugen go up and down completely randomly.
Pair Corralation between Aeterna Zentaris and Ocugen
Given the investment horizon of 90 days Aeterna Zentaris is expected to under-perform the Ocugen. But the stock apears to be less risky and, when comparing its historical volatility, Aeterna Zentaris is 1.36 times less risky than Ocugen. The stock trades about -0.03 of its potential returns per unit of risk. The Ocugen Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 135.00 in Ocugen Inc on August 30, 2024 and sell it today you would lose (38.00) from holding Ocugen Inc or give up 28.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.65% |
| Values | Daily Returns |
Aeterna Zentaris vs. Ocugen Inc
Performance |
| Timeline |
| Aeterna Zentaris |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ocugen Inc |
Aeterna Zentaris and Ocugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeterna Zentaris and Ocugen
The main advantage of trading using opposite Aeterna Zentaris and Ocugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeterna Zentaris 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.| Aeterna Zentaris vs. Pulmatrix | Aeterna Zentaris vs. Bio Path Holdings | Aeterna Zentaris vs. Moleculin Biotech | Aeterna Zentaris vs. Adial Pharmaceuticals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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