Correlation Between Champions Oncology and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both Champions Oncology and MAIA Biotechnology 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 MAIA Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champions Oncology and MAIA Biotechnology, you can compare the effects of market volatilities on Champions Oncology and MAIA Biotechnology 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 MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champions Oncology and MAIA Biotechnology.
Diversification Opportunities for Champions Oncology and MAIA Biotechnology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Champions and MAIA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Champions Oncology and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology 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 MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of Champions Oncology i.e., Champions Oncology and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between Champions Oncology and MAIA Biotechnology
Given the investment horizon of 90 days Champions Oncology is expected to generate 0.97 times more return on investment than MAIA Biotechnology. However, Champions Oncology is 1.04 times less risky than MAIA Biotechnology. It trades about 0.14 of its potential returns per unit of risk. MAIA Biotechnology is currently generating about -0.13 per unit of risk. If you would invest 974.00 in Champions Oncology on November 4, 2024 and sell it today you would earn a total of 125.00 from holding Champions Oncology or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champions Oncology vs. MAIA Biotechnology
Performance |
| Timeline |
| Champions Oncology |
| MAIA Biotechnology |
Champions Oncology and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champions Oncology and MAIA Biotechnology
The main advantage of trading using opposite Champions Oncology and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champions Oncology position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology's long position.| Champions Oncology vs. Molecular Partners AG | Champions Oncology vs. MediciNova | Champions Oncology vs. Anebulo Pharmaceuticals | Champions Oncology vs. Shattuck Labs |
| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar Therapeutics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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