Correlation Between Flinders Resources and Oncolytics Biotech
Can any of the company-specific risk be diversified away by investing in both Flinders Resources and Oncolytics Biotech 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 Flinders Resources and Oncolytics Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flinders Resources Limited and Oncolytics Biotech, you can compare the effects of market volatilities on Flinders Resources and Oncolytics Biotech 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 Flinders Resources with a short position of Oncolytics Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flinders Resources and Oncolytics Biotech.
Diversification Opportunities for Flinders Resources and Oncolytics Biotech
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flinders and Oncolytics is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Flinders Resources Limited and Oncolytics Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncolytics Biotech and Flinders Resources 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 Flinders Resources Limited are associated (or correlated) with Oncolytics Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncolytics Biotech has no effect on the direction of Flinders Resources i.e., Flinders Resources and Oncolytics Biotech go up and down completely randomly.
Pair Corralation between Flinders Resources and Oncolytics Biotech
Assuming the 90 days horizon Flinders Resources Limited is expected to generate 1.03 times more return on investment than Oncolytics Biotech. However, Flinders Resources is 1.03 times more volatile than Oncolytics Biotech. It trades about 0.11 of its potential returns per unit of risk. Oncolytics Biotech is currently generating about -0.29 per unit of risk. If you would invest 455.00 in Flinders Resources Limited on October 28, 2024 and sell it today you would earn a total of 36.00 from holding Flinders Resources Limited or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flinders Resources Limited vs. Oncolytics Biotech
Performance |
| Timeline |
| Flinders Resources |
| Oncolytics Biotech |
Flinders Resources and Oncolytics Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flinders Resources and Oncolytics Biotech
The main advantage of trading using opposite Flinders Resources and Oncolytics Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flinders Resources position performs unexpectedly, Oncolytics Biotech 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 Oncolytics Biotech will offset losses from the drop in Oncolytics Biotech's long position.| Flinders Resources vs. NV Gold Corp | Flinders Resources vs. Prosper Gold Corp | Flinders Resources vs. Kesselrun Resources | Flinders Resources vs. iShares Canadian HYBrid |
| Oncolytics Biotech vs. Theratechnologies | Oncolytics Biotech vs. Aptose Biosciences | Oncolytics Biotech vs. Resverlogix Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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