Correlation Between Evolus and OncoCyte Corp
Can any of the company-specific risk be diversified away by investing in both Evolus and OncoCyte Corp 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 Evolus and OncoCyte Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolus Inc and OncoCyte Corp, you can compare the effects of market volatilities on Evolus and OncoCyte Corp 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 Evolus with a short position of OncoCyte Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolus and OncoCyte Corp.
Diversification Opportunities for Evolus and OncoCyte Corp
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evolus and OncoCyte is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Evolus Inc and OncoCyte Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OncoCyte Corp and Evolus 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 Evolus Inc are associated (or correlated) with OncoCyte Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OncoCyte Corp has no effect on the direction of Evolus i.e., Evolus and OncoCyte Corp go up and down completely randomly.
Pair Corralation between Evolus and OncoCyte Corp
Given the investment horizon of 90 days Evolus Inc is expected to generate 0.79 times more return on investment than OncoCyte Corp. However, Evolus Inc is 1.26 times less risky than OncoCyte Corp. It trades about 0.06 of its potential returns per unit of risk. OncoCyte Corp is currently generating about 0.0 per unit of risk. If you would invest 957.00 in Evolus Inc on September 4, 2024 and sell it today you would earn a total of 394.00 from holding Evolus Inc or generate 41.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolus Inc vs. OncoCyte Corp
Performance |
| Timeline |
| Evolus Inc |
| OncoCyte Corp |
Evolus and OncoCyte Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolus and OncoCyte Corp
The main advantage of trading using opposite Evolus and OncoCyte Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolus position performs unexpectedly, OncoCyte Corp 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 OncoCyte Corp will offset losses from the drop in OncoCyte Corp's long position.| Evolus vs. Collegium Pharmaceutical | Evolus vs. Phibro Animal Health | Evolus vs. ANI Pharmaceuticals | Evolus vs. Procaps Group SA |
| OncoCyte Corp vs. Candel Therapeutics | OncoCyte Corp vs. Anebulo Pharmaceuticals | OncoCyte Corp vs. Cingulate Warrants | OncoCyte Corp vs. Unicycive 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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