Correlation Between Fortress Biotech and Onconova Therapeutics
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and Onconova Therapeutics 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 Fortress Biotech and Onconova Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and Onconova Therapeutics, you can compare the effects of market volatilities on Fortress Biotech and Onconova Therapeutics 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 Fortress Biotech with a short position of Onconova Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Onconova Therapeutics.
Diversification Opportunities for Fortress Biotech and Onconova Therapeutics
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortress and Onconova is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Onconova Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconova Therapeutics and Fortress Biotech 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 Fortress Biotech are associated (or correlated) with Onconova Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconova Therapeutics has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Onconova Therapeutics go up and down completely randomly.
Pair Corralation between Fortress Biotech and Onconova Therapeutics
If you would invest 102.00 in Onconova Therapeutics on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Onconova Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fortress Biotech vs. Onconova Therapeutics
Performance |
| Timeline |
| Fortress Biotech |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortress Biotech and Onconova Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Onconova Therapeutics
The main advantage of trading using opposite Fortress Biotech and Onconova Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, Onconova Therapeutics 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 Onconova Therapeutics will offset losses from the drop in Onconova Therapeutics' long position.| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Achilles Therapeutics PLC | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref |
| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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