Correlation Between Cidara Therapeutics and Ocuphire Pharma
Can any of the company-specific risk be diversified away by investing in both Cidara Therapeutics and Ocuphire Pharma 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 Cidara Therapeutics and Ocuphire Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cidara Therapeutics and Ocuphire Pharma, you can compare the effects of market volatilities on Cidara Therapeutics and Ocuphire Pharma 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 Cidara Therapeutics with a short position of Ocuphire Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cidara Therapeutics and Ocuphire Pharma.
Diversification Opportunities for Cidara Therapeutics and Ocuphire Pharma
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cidara and Ocuphire is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cidara Therapeutics and Ocuphire Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocuphire Pharma and Cidara Therapeutics 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 Cidara Therapeutics are associated (or correlated) with Ocuphire Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocuphire Pharma has no effect on the direction of Cidara Therapeutics i.e., Cidara Therapeutics and Ocuphire Pharma go up and down completely randomly.
Pair Corralation between Cidara Therapeutics and Ocuphire Pharma
If you would invest 1,116 in Cidara Therapeutics on August 25, 2024 and sell it today you would earn a total of 924.00 from holding Cidara Therapeutics or generate 82.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.09% |
| Values | Daily Returns |
Cidara Therapeutics vs. Ocuphire Pharma
Performance |
| Timeline |
| Cidara Therapeutics |
| Ocuphire Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cidara Therapeutics and Ocuphire Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cidara Therapeutics and Ocuphire Pharma
The main advantage of trading using opposite Cidara Therapeutics and Ocuphire Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cidara Therapeutics position performs unexpectedly, Ocuphire Pharma 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 Ocuphire Pharma will offset losses from the drop in Ocuphire Pharma's long position.| Cidara Therapeutics vs. CytomX Therapeutics | Cidara Therapeutics vs. Clearside Biomedical | Cidara Therapeutics vs. GlycoMimetics |
| Ocuphire Pharma vs. Reviva Pharmaceuticals Holdings | Ocuphire Pharma vs. Protalix Biotherapeutics | Ocuphire Pharma vs. Eyepoint Pharmaceuticals | Ocuphire Pharma vs. Sellas Life Sciences |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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