Correlation Between Onxeo SA and Moderna
Can any of the company-specific risk be diversified away by investing in both Onxeo SA and Moderna 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 Onxeo SA and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onxeo SA and Moderna, you can compare the effects of market volatilities on Onxeo SA and Moderna 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 Onxeo SA with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onxeo SA and Moderna.
Diversification Opportunities for Onxeo SA and Moderna
Very weak diversification
The 3 months correlation between Onxeo and Moderna is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Onxeo SA and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Onxeo SA 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 Onxeo SA are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Onxeo SA i.e., Onxeo SA and Moderna go up and down completely randomly.
Pair Corralation between Onxeo SA and Moderna
Assuming the 90 days horizon Onxeo SA is expected to generate 2.25 times more return on investment than Moderna. However, Onxeo SA is 2.25 times more volatile than Moderna. It trades about 0.01 of its potential returns per unit of risk. Moderna is currently generating about -0.07 per unit of risk. If you would invest 7.14 in Onxeo SA on December 4, 2024 and sell it today you would lose (2.09) from holding Onxeo SA or give up 29.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onxeo SA vs. Moderna
Performance |
| Timeline |
| Onxeo SA |
| Moderna |
Onxeo SA and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onxeo SA and Moderna
The main advantage of trading using opposite Onxeo SA and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onxeo SA position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| Onxeo SA vs. Sixt Leasing SE | Onxeo SA vs. Japan Medical Dynamic | Onxeo SA vs. Salesforce | Onxeo SA vs. Global Ship Lease |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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