Correlation Between Ceres Power and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Ceres Power and Oncimmune Holdings 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 Ceres Power and Oncimmune Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceres Power Holdings and Oncimmune Holdings plc, you can compare the effects of market volatilities on Ceres Power and Oncimmune Holdings 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 Ceres Power with a short position of Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceres Power and Oncimmune Holdings.
Diversification Opportunities for Ceres Power and Oncimmune Holdings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceres and Oncimmune is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ceres Power Holdings and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings plc and Ceres Power 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 Ceres Power Holdings are associated (or correlated) with Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Ceres Power i.e., Ceres Power and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Ceres Power and Oncimmune Holdings
Assuming the 90 days trading horizon Ceres Power Holdings is expected to under-perform the Oncimmune Holdings. In addition to that, Ceres Power is 2.04 times more volatile than Oncimmune Holdings plc. It trades about -0.25 of its total potential returns per unit of risk. Oncimmune Holdings plc is currently generating about 0.0 per unit of volatility. If you would invest 1,525 in Oncimmune Holdings plc on September 4, 2024 and sell it today you would lose (5.00) from holding Oncimmune Holdings plc or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceres Power Holdings vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Ceres Power Holdings |
| Oncimmune Holdings plc |
Ceres Power and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceres Power and Oncimmune Holdings
The main advantage of trading using opposite Ceres Power and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceres Power position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Ceres Power vs. Home Depot | Ceres Power vs. Beazer Homes USA | Ceres Power vs. Beeks Trading | Ceres Power vs. The Mercantile Investment |
| Oncimmune Holdings vs. Zanaga Iron Ore | Oncimmune Holdings vs. Catalyst Media Group | Oncimmune Holdings vs. Centaur Media | Oncimmune Holdings vs. Zinc Media Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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