Correlation Between BioCardia and OncoVista Innovative
Can any of the company-specific risk be diversified away by investing in both BioCardia and OncoVista Innovative 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 BioCardia and OncoVista Innovative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioCardia and OncoVista Innovative Therapies, you can compare the effects of market volatilities on BioCardia and OncoVista Innovative 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 BioCardia with a short position of OncoVista Innovative. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioCardia and OncoVista Innovative.
Diversification Opportunities for BioCardia and OncoVista Innovative
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioCardia and OncoVista is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioCardia and OncoVista Innovative Therapies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OncoVista Innovative and BioCardia 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 BioCardia are associated (or correlated) with OncoVista Innovative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OncoVista Innovative has no effect on the direction of BioCardia i.e., BioCardia and OncoVista Innovative go up and down completely randomly.
Pair Corralation between BioCardia and OncoVista Innovative
Assuming the 90 days horizon BioCardia is expected to generate 9.37 times more return on investment than OncoVista Innovative. However, BioCardia is 9.37 times more volatile than OncoVista Innovative Therapies. It trades about 0.08 of its potential returns per unit of risk. OncoVista Innovative Therapies is currently generating about 0.05 per unit of risk. If you would invest 73.00 in BioCardia on November 2, 2024 and sell it today you would lose (73.00) from holding BioCardia or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 43.06% |
| Values | Daily Returns |
BioCardia vs. OncoVista Innovative Therapies
Performance |
| Timeline |
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OncoVista Innovative |
BioCardia and OncoVista Innovative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioCardia and OncoVista Innovative
The main advantage of trading using opposite BioCardia and OncoVista Innovative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioCardia position performs unexpectedly, OncoVista Innovative 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 OncoVista Innovative will offset losses from the drop in OncoVista Innovative's long position.The idea behind BioCardia and OncoVista Innovative Therapies 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.| OncoVista Innovative vs. Cyclacel Pharmaceuticals | OncoVista Innovative vs. Amylyx Pharmaceuticals | OncoVista Innovative vs. Axsome Therapeutics | OncoVista Innovative vs. Exelixis |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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