Correlation Between Geron and Oxford BioDynamics
Can any of the company-specific risk be diversified away by investing in both Geron and Oxford BioDynamics 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 Geron and Oxford BioDynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Oxford BioDynamics Plc, you can compare the effects of market volatilities on Geron and Oxford BioDynamics 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 Geron with a short position of Oxford BioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Oxford BioDynamics.
Diversification Opportunities for Geron and Oxford BioDynamics
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Geron and Oxford is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Oxford BioDynamics Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford BioDynamics Plc and Geron 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 Geron are associated (or correlated) with Oxford BioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford BioDynamics Plc has no effect on the direction of Geron i.e., Geron and Oxford BioDynamics go up and down completely randomly.
Pair Corralation between Geron and Oxford BioDynamics
Given the investment horizon of 90 days Geron is expected to generate 7.09 times less return on investment than Oxford BioDynamics. But when comparing it to its historical volatility, Geron is 9.18 times less risky than Oxford BioDynamics. It trades about 0.06 of its potential returns per unit of risk. Oxford BioDynamics Plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Oxford BioDynamics Plc on September 12, 2024 and sell it today you would lose (29.00) from holding Oxford BioDynamics Plc or give up 96.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Geron vs. Oxford BioDynamics Plc
Performance |
| Timeline |
| Geron |
| Oxford BioDynamics Plc |
Geron and Oxford BioDynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Oxford BioDynamics
The main advantage of trading using opposite Geron and Oxford BioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Oxford BioDynamics 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 Oxford BioDynamics will offset losses from the drop in Oxford BioDynamics' long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Oxford BioDynamics vs. Protalix Biotherapeutics | Oxford BioDynamics vs. Seres Therapeutics | Oxford BioDynamics vs. Cidara Therapeutics | Oxford BioDynamics vs. Immunitybio |
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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