Correlation Between ChitogenX and Oxford BioDynamics
Can any of the company-specific risk be diversified away by investing in both ChitogenX and Oxford BioDynamics 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 Oxford BioDynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChitogenX and Oxford BioDynamics Plc, you can compare the effects of market volatilities on ChitogenX and Oxford BioDynamics 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 Oxford BioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChitogenX and Oxford BioDynamics.
Diversification Opportunities for ChitogenX and Oxford BioDynamics
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ChitogenX and Oxford is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding ChitogenX and Oxford BioDynamics Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford BioDynamics Plc 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 Oxford BioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford BioDynamics Plc has no effect on the direction of ChitogenX i.e., ChitogenX and Oxford BioDynamics go up and down completely randomly.
Pair Corralation between ChitogenX and Oxford BioDynamics
Assuming the 90 days horizon ChitogenX is expected to generate 0.06 times more return on investment than Oxford BioDynamics. However, ChitogenX is 15.53 times less risky than Oxford BioDynamics. It trades about -0.12 of its potential returns per unit of risk. Oxford BioDynamics Plc is currently generating about -0.22 per unit of risk. If you would invest 0.52 in ChitogenX on September 14, 2024 and sell it today you would lose (0.01) from holding ChitogenX or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
ChitogenX vs. Oxford BioDynamics Plc
Performance |
| Timeline |
| ChitogenX |
| Oxford BioDynamics Plc |
ChitogenX and Oxford BioDynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChitogenX and Oxford BioDynamics
The main advantage of trading using opposite ChitogenX and Oxford BioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChitogenX position performs unexpectedly, Oxford BioDynamics 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 Oxford BioDynamics will offset losses from the drop in Oxford BioDynamics' long position.| ChitogenX vs. Sino Biopharmaceutical Ltd | ChitogenX vs. Defence Therapeutics | ChitogenX vs. Aileron Therapeutics | ChitogenX vs. Enlivex Therapeutics |
| Oxford BioDynamics vs. Protalix Biotherapeutics | Oxford BioDynamics vs. Seres Therapeutics | Oxford BioDynamics vs. Cidara Therapeutics | Oxford BioDynamics vs. Immunitybio |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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