Correlation Between Champions Oncology and Clene
Can any of the company-specific risk be diversified away by investing in both Champions Oncology and Clene 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 Champions Oncology and Clene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champions Oncology and Clene Inc, you can compare the effects of market volatilities on Champions Oncology and Clene 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 Champions Oncology with a short position of Clene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champions Oncology and Clene.
Diversification Opportunities for Champions Oncology and Clene
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champions and Clene is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Champions Oncology and Clene Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clene Inc and Champions Oncology 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 Champions Oncology are associated (or correlated) with Clene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clene Inc has no effect on the direction of Champions Oncology i.e., Champions Oncology and Clene go up and down completely randomly.
Pair Corralation between Champions Oncology and Clene
Given the investment horizon of 90 days Champions Oncology is expected to generate 0.51 times more return on investment than Clene. However, Champions Oncology is 1.95 times less risky than Clene. It trades about 0.01 of its potential returns per unit of risk. Clene Inc is currently generating about -0.02 per unit of risk. If you would invest 453.00 in Champions Oncology on August 29, 2024 and sell it today you would lose (20.00) from holding Champions Oncology or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champions Oncology vs. Clene Inc
Performance |
| Timeline |
| Champions Oncology |
| Clene Inc |
Champions Oncology and Clene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champions Oncology and Clene
The main advantage of trading using opposite Champions Oncology and Clene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champions Oncology position performs unexpectedly, Clene 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 Clene will offset losses from the drop in Clene's long position.| Champions Oncology vs. Fonar | Champions Oncology vs. Burning Rock Biotech | Champions Oncology vs. Sera Prognostics | Champions Oncology vs. Exagen Inc |
| Clene vs. MediciNova | Clene vs. Eliem Therapeutics | Clene vs. Molecular Partners AG | Clene vs. Champions Oncology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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