Correlation Between ChitogenX and Oncotelic Therapeutics
Can any of the company-specific risk be diversified away by investing in both ChitogenX and Oncotelic Therapeutics 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 ChitogenX and Oncotelic Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChitogenX and Oncotelic Therapeutics, you can compare the effects of market volatilities on ChitogenX and Oncotelic Therapeutics 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 ChitogenX with a short position of Oncotelic Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChitogenX and Oncotelic Therapeutics.
Diversification Opportunities for ChitogenX and Oncotelic Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ChitogenX and Oncotelic is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ChitogenX and Oncotelic Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncotelic Therapeutics and ChitogenX 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 ChitogenX are associated (or correlated) with Oncotelic Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncotelic Therapeutics has no effect on the direction of ChitogenX i.e., ChitogenX and Oncotelic Therapeutics go up and down completely randomly.
Pair Corralation between ChitogenX and Oncotelic Therapeutics
Assuming the 90 days horizon ChitogenX is expected to under-perform the Oncotelic Therapeutics. But the otc stock apears to be less risky and, when comparing its historical volatility, ChitogenX is 1.72 times less risky than Oncotelic Therapeutics. The otc stock trades about -0.05 of its potential returns per unit of risk. The Oncotelic Therapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Oncotelic Therapeutics on September 2, 2024 and sell it today you would lose (2.80) from holding Oncotelic Therapeutics or give up 56.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 30.99% |
| Values | Daily Returns |
ChitogenX vs. Oncotelic Therapeutics
Performance |
| Timeline |
| ChitogenX |
| Oncotelic Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ChitogenX and Oncotelic Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChitogenX and Oncotelic Therapeutics
The main advantage of trading using opposite ChitogenX and Oncotelic Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChitogenX position performs unexpectedly, Oncotelic Therapeutics 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 Oncotelic Therapeutics will offset losses from the drop in Oncotelic Therapeutics' long position.| ChitogenX vs. Rigel Pharmaceuticals | ChitogenX vs. Geron | ChitogenX vs. Verastem | ChitogenX vs. Immutep Ltd ADR |
| Oncotelic Therapeutics vs. Processa Pharmaceuticals | Oncotelic Therapeutics vs. Advanced Proteome Therapeutics | Oncotelic Therapeutics vs. Cellectis SA | Oncotelic Therapeutics vs. ChitogenX |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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