Correlation Between Champions Oncology and Transgene
Can any of the company-specific risk be diversified away by investing in both Champions Oncology and Transgene 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 Transgene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champions Oncology and Transgene SA, you can compare the effects of market volatilities on Champions Oncology and Transgene 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 Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champions Oncology and Transgene.
Diversification Opportunities for Champions Oncology and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Champions and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Champions Oncology and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Champions Oncology i.e., Champions Oncology and Transgene go up and down completely randomly.
Pair Corralation between Champions Oncology and Transgene
Given the investment horizon of 90 days Champions Oncology is expected to under-perform the Transgene. In addition to that, Champions Oncology is 1.74 times more volatile than Transgene SA. It trades about -0.01 of its total potential returns per unit of risk. Transgene SA is currently generating about 0.01 per unit of volatility. If you would invest 162.00 in Transgene SA on August 24, 2024 and sell it today you would lose (3.00) from holding Transgene SA or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champions Oncology vs. Transgene SA
Performance |
| Timeline |
| Champions Oncology |
| Transgene SA |
Champions Oncology and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champions Oncology and Transgene
The main advantage of trading using opposite Champions Oncology and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champions Oncology position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| Champions Oncology vs. Molecular Partners AG | Champions Oncology vs. MediciNova | Champions Oncology vs. Anebulo Pharmaceuticals | Champions Oncology vs. Shattuck Labs |
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 Correlations module to find global opportunities by holding instruments from different markets.
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