Correlation Between Armata Pharmaceuticals and OS Therapies
Can any of the company-specific risk be diversified away by investing in both Armata Pharmaceuticals and OS Therapies 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 Armata Pharmaceuticals and OS Therapies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armata Pharmaceuticals and OS Therapies Incorporated, you can compare the effects of market volatilities on Armata Pharmaceuticals and OS Therapies 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 Armata Pharmaceuticals with a short position of OS Therapies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armata Pharmaceuticals and OS Therapies.
Diversification Opportunities for Armata Pharmaceuticals and OS Therapies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armata and OSTX is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Armata Pharmaceuticals and OS Therapies Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OS Therapies and Armata Pharmaceuticals 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 Armata Pharmaceuticals are associated (or correlated) with OS Therapies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OS Therapies has no effect on the direction of Armata Pharmaceuticals i.e., Armata Pharmaceuticals and OS Therapies go up and down completely randomly.
Pair Corralation between Armata Pharmaceuticals and OS Therapies
Given the investment horizon of 90 days Armata Pharmaceuticals is expected to generate 0.41 times more return on investment than OS Therapies. However, Armata Pharmaceuticals is 2.44 times less risky than OS Therapies. It trades about 0.12 of its potential returns per unit of risk. OS Therapies Incorporated is currently generating about -0.3 per unit of risk. If you would invest 190.00 in Armata Pharmaceuticals on October 31, 2024 and sell it today you would earn a total of 14.00 from holding Armata Pharmaceuticals or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armata Pharmaceuticals vs. OS Therapies Incorporated
Performance |
| Timeline |
| Armata Pharmaceuticals |
| OS Therapies |
Armata Pharmaceuticals and OS Therapies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armata Pharmaceuticals and OS Therapies
The main advantage of trading using opposite Armata Pharmaceuticals and OS Therapies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armata Pharmaceuticals position performs unexpectedly, OS Therapies 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 OS Therapies will offset losses from the drop in OS Therapies' long position.The idea behind Armata Pharmaceuticals and OS Therapies Incorporated pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| OS Therapies vs. Direct Line Insurance | OS Therapies vs. The Coca Cola | OS Therapies vs. CNA Financial | OS Therapies vs. Thai Beverage PCL |
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 CEOs Directory module to screen CEOs from public companies around the world.
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