Correlation Between Burning Rock and Champions Oncology
Can any of the company-specific risk be diversified away by investing in both Burning Rock 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 Burning Rock and Champions Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burning Rock Biotech and Champions Oncology, you can compare the effects of market volatilities on Burning Rock 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 Burning Rock with a short position of Champions Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and Champions Oncology.
Diversification Opportunities for Burning Rock and Champions Oncology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Burning and Champions is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and Champions Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champions Oncology and Burning Rock 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 Burning Rock Biotech 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 Burning Rock i.e., Burning Rock and Champions Oncology go up and down completely randomly.
Pair Corralation between Burning Rock and Champions Oncology
Considering the 90-day investment horizon Burning Rock Biotech is expected to under-perform the Champions Oncology. In addition to that, Burning Rock is 1.53 times more volatile than Champions Oncology. It trades about -0.04 of its total potential returns per unit of risk. Champions Oncology is currently generating about 0.0 per unit of volatility. If you would invest 538.00 in Champions Oncology on August 31, 2024 and sell it today you would lose (86.00) from holding Champions Oncology or give up 15.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burning Rock Biotech vs. Champions Oncology
Performance |
| Timeline |
| Burning Rock Biotech |
| Champions Oncology |
Burning Rock and Champions Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and Champions Oncology
The main advantage of trading using opposite Burning Rock and Champions Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock 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.| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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