Correlation Between Bright Minds and Oculis Holding
Can any of the company-specific risk be diversified away by investing in both Bright Minds and Oculis Holding 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 Bright Minds and Oculis Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bright Minds Biosciences and Oculis Holding AG, you can compare the effects of market volatilities on Bright Minds and Oculis Holding 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 Bright Minds with a short position of Oculis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Minds and Oculis Holding.
Diversification Opportunities for Bright Minds and Oculis Holding
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bright and Oculis is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bright Minds Biosciences and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG and Bright Minds 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 Bright Minds Biosciences are associated (or correlated) with Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of Bright Minds i.e., Bright Minds and Oculis Holding go up and down completely randomly.
Pair Corralation between Bright Minds and Oculis Holding
Given the investment horizon of 90 days Bright Minds is expected to generate 1.49 times less return on investment than Oculis Holding. But when comparing it to its historical volatility, Bright Minds Biosciences is 1.27 times less risky than Oculis Holding. It trades about 0.08 of its potential returns per unit of risk. Oculis Holding AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Oculis Holding AG on September 4, 2024 and sell it today you would earn a total of 245.00 from holding Oculis Holding AG or generate 168.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 61.94% |
| Values | Daily Returns |
Bright Minds Biosciences vs. Oculis Holding AG
Performance |
| Timeline |
| Bright Minds Biosciences |
| Oculis Holding AG |
Bright Minds and Oculis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Minds and Oculis Holding
The main advantage of trading using opposite Bright Minds and Oculis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Minds position performs unexpectedly, Oculis Holding 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 Oculis Holding will offset losses from the drop in Oculis Holding's long position.| Bright Minds vs. Revelation Biosciences | Bright Minds vs. Zura Bio Limited | Bright Minds vs. Phio Pharmaceuticals Corp | Bright Minds vs. ZyVersa Therapeutics |
| Oculis Holding vs. Western Midstream Partners | Oculis Holding vs. Pure Cycle | Oculis Holding vs. Compania Cervecerias Unidas | Oculis Holding vs. Atmos Energy |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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