Correlation Between BioLineRx and Champions Oncology
Can any of the company-specific risk be diversified away by investing in both BioLineRx and Champions Oncology 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 BioLineRx and Champions Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLineRx and Champions Oncology, you can compare the effects of market volatilities on BioLineRx and Champions Oncology 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 BioLineRx with a short position of Champions Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLineRx and Champions Oncology.
Diversification Opportunities for BioLineRx and Champions Oncology
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BioLineRx and Champions is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BioLineRx and Champions Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champions Oncology and BioLineRx 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 BioLineRx are associated (or correlated) with Champions Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champions Oncology has no effect on the direction of BioLineRx i.e., BioLineRx and Champions Oncology go up and down completely randomly.
Pair Corralation between BioLineRx and Champions Oncology
Given the investment horizon of 90 days BioLineRx is expected to under-perform the Champions Oncology. In addition to that, BioLineRx is 3.14 times more volatile than Champions Oncology. It trades about -0.05 of its total potential returns per unit of risk. Champions Oncology is currently generating about 0.12 per unit of volatility. If you would invest 401.00 in Champions Oncology on August 24, 2024 and sell it today you would earn a total of 31.00 from holding Champions Oncology or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BioLineRx vs. Champions Oncology
Performance |
| Timeline |
| BioLineRx |
| Champions Oncology |
BioLineRx and Champions Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLineRx and Champions Oncology
The main advantage of trading using opposite BioLineRx and Champions Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLineRx position performs unexpectedly, Champions Oncology 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 Champions Oncology will offset losses from the drop in Champions Oncology's long position.| BioLineRx vs. Ardelyx | BioLineRx vs. Lexicon Pharmaceuticals | BioLineRx vs. Seres Therapeutics | BioLineRx vs. Immunitybio |
| Champions Oncology vs. Molecular Partners AG | Champions Oncology vs. MediciNova | Champions Oncology vs. Anebulo Pharmaceuticals | Champions Oncology vs. Shattuck Labs |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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