Correlation Between Fonar and OncoCyte Corp
Can any of the company-specific risk be diversified away by investing in both Fonar 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 Fonar and OncoCyte Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonar and OncoCyte Corp, you can compare the effects of market volatilities on Fonar 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 Fonar with a short position of OncoCyte Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonar and OncoCyte Corp.
Diversification Opportunities for Fonar and OncoCyte Corp
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fonar and OncoCyte is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fonar and OncoCyte Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OncoCyte Corp and Fonar 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 Fonar 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 Fonar i.e., Fonar and OncoCyte Corp go up and down completely randomly.
Pair Corralation between Fonar and OncoCyte Corp
Given the investment horizon of 90 days Fonar is expected to generate 0.99 times more return on investment than OncoCyte Corp. However, Fonar is 1.01 times less risky than OncoCyte Corp. It trades about 0.14 of its potential returns per unit of risk. OncoCyte Corp is currently generating about -0.3 per unit of risk. If you would invest 1,520 in Fonar on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Fonar or generate 8.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fonar vs. OncoCyte Corp
Performance |
| Timeline |
| Fonar |
| OncoCyte Corp |
Fonar and OncoCyte Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonar and OncoCyte Corp
The main advantage of trading using opposite Fonar and OncoCyte Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar 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.| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
| OncoCyte Corp vs. Tff Pharmaceuticals | OncoCyte Corp vs. Eliem Therapeutics | OncoCyte Corp vs. Inhibrx | OncoCyte Corp vs. Enliven 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |