Correlation Between BiOasis Technologies and Fennec Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BiOasis Technologies and Fennec Pharmaceuticals 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 BiOasis Technologies and Fennec Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between biOasis Technologies and Fennec Pharmaceuticals, you can compare the effects of market volatilities on BiOasis Technologies and Fennec Pharmaceuticals 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 BiOasis Technologies with a short position of Fennec Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BiOasis Technologies and Fennec Pharmaceuticals.
Diversification Opportunities for BiOasis Technologies and Fennec Pharmaceuticals
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BiOasis and Fennec is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec Pharmaceuticals and BiOasis Technologies 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 biOasis Technologies are associated (or correlated) with Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of BiOasis Technologies i.e., BiOasis Technologies and Fennec Pharmaceuticals go up and down completely randomly.
Pair Corralation between BiOasis Technologies and Fennec Pharmaceuticals
Assuming the 90 days horizon biOasis Technologies is expected to generate 11.52 times more return on investment than Fennec Pharmaceuticals. However, BiOasis Technologies is 11.52 times more volatile than Fennec Pharmaceuticals. It trades about 0.22 of its potential returns per unit of risk. Fennec Pharmaceuticals is currently generating about -0.26 per unit of risk. If you would invest 0.01 in biOasis Technologies on October 25, 2024 and sell it today you would earn a total of 0.01 from holding biOasis Technologies or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
biOasis Technologies vs. Fennec Pharmaceuticals
Performance |
| Timeline |
| biOasis Technologies |
| Fennec Pharmaceuticals |
BiOasis Technologies and Fennec Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BiOasis Technologies and Fennec Pharmaceuticals
The main advantage of trading using opposite BiOasis Technologies and Fennec Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BiOasis Technologies position performs unexpectedly, Fennec Pharmaceuticals 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 Fennec Pharmaceuticals will offset losses from the drop in Fennec Pharmaceuticals' long position.| BiOasis Technologies vs. Biotron Limited | BiOasis Technologies vs. Covalon Technologies | BiOasis Technologies vs. Mosaic Immunoengineering | BiOasis Technologies vs. Cellectis SA |
| Fennec Pharmaceuticals vs. Molecular Partners AG | Fennec Pharmaceuticals vs. MediciNova | Fennec Pharmaceuticals vs. Anebulo Pharmaceuticals | Fennec Pharmaceuticals vs. Champions Oncology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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