Correlation Between Champions Oncology and Molecular Partners
Can any of the company-specific risk be diversified away by investing in both Champions Oncology and Molecular Partners 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 Molecular Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champions Oncology and Molecular Partners AG, you can compare the effects of market volatilities on Champions Oncology and Molecular Partners 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 Molecular Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champions Oncology and Molecular Partners.
Diversification Opportunities for Champions Oncology and Molecular Partners
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Champions and Molecular is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Champions Oncology and Molecular Partners AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecular Partners 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 Molecular Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecular Partners has no effect on the direction of Champions Oncology i.e., Champions Oncology and Molecular Partners go up and down completely randomly.
Pair Corralation between Champions Oncology and Molecular Partners
Given the investment horizon of 90 days Champions Oncology is expected to generate 1.56 times more return on investment than Molecular Partners. However, Champions Oncology is 1.56 times more volatile than Molecular Partners AG. It trades about 0.24 of its potential returns per unit of risk. Molecular Partners AG is currently generating about 0.11 per unit of risk. If you would invest 820.00 in Champions Oncology on November 2, 2024 and sell it today you would earn a total of 250.00 from holding Champions Oncology or generate 30.49% 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. Molecular Partners AG
Performance |
| Timeline |
| Champions Oncology |
| Molecular Partners |
Champions Oncology and Molecular Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champions Oncology and Molecular Partners
The main advantage of trading using opposite Champions Oncology and Molecular Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champions Oncology position performs unexpectedly, Molecular Partners 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 Molecular Partners will offset losses from the drop in Molecular Partners' long position.| Champions Oncology vs. Molecular Partners AG | Champions Oncology vs. MediciNova | Champions Oncology vs. Anebulo Pharmaceuticals | Champions Oncology vs. Shattuck Labs |
| Molecular Partners vs. Surrozen | Molecular Partners vs. Armata Pharmaceuticals | Molecular Partners vs. Pasithea Therapeutics Corp | Molecular Partners vs. Aditxt Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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