Correlation Between Ibio and Onconova Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ibio 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 Ibio and Onconova Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibio Inc and Onconova Therapeutics, you can compare the effects of market volatilities on Ibio 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 Ibio with a short position of Onconova Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibio and Onconova Therapeutics.
Diversification Opportunities for Ibio and Onconova Therapeutics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ibio and Onconova is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ibio Inc and Onconova Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconova Therapeutics and Ibio 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 Ibio Inc 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 Ibio i.e., Ibio and Onconova Therapeutics go up and down completely randomly.
Pair Corralation between Ibio and Onconova Therapeutics
Given the investment horizon of 90 days Ibio is expected to generate 2.08 times less return on investment than Onconova Therapeutics. In addition to that, Ibio is 1.64 times more volatile than Onconova Therapeutics. It trades about 0.02 of its total potential returns per unit of risk. Onconova Therapeutics is currently generating about 0.06 per unit of volatility. If you would invest 76.00 in Onconova Therapeutics on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Onconova Therapeutics or generate 34.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Ibio Inc vs. Onconova Therapeutics
Performance |
| Timeline |
| Ibio Inc |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ibio and Onconova Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibio and Onconova Therapeutics
The main advantage of trading using opposite Ibio and Onconova Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibio 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.| Ibio vs. Jaguar Animal Health | Ibio vs. GeoVax Labs | Ibio vs. Ocugen Inc | Ibio vs. Tonix Pharmaceuticals Holding |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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