Correlation Between Lineage Cell and Oxford Nanopore
Can any of the company-specific risk be diversified away by investing in both Lineage Cell and Oxford Nanopore 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 Lineage Cell and Oxford Nanopore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lineage Cell Therapeutics and Oxford Nanopore Technologies, you can compare the effects of market volatilities on Lineage Cell and Oxford Nanopore 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 Lineage Cell with a short position of Oxford Nanopore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lineage Cell and Oxford Nanopore.
Diversification Opportunities for Lineage Cell and Oxford Nanopore
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lineage and Oxford is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lineage Cell Therapeutics and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech and Lineage Cell 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 Lineage Cell Therapeutics are associated (or correlated) with Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of Lineage Cell i.e., Lineage Cell and Oxford Nanopore go up and down completely randomly.
Pair Corralation between Lineage Cell and Oxford Nanopore
Given the investment horizon of 90 days Lineage Cell Therapeutics is expected to under-perform the Oxford Nanopore. In addition to that, Lineage Cell is 1.15 times more volatile than Oxford Nanopore Technologies. It trades about 0.0 of its total potential returns per unit of risk. Oxford Nanopore Technologies is currently generating about 0.0 per unit of volatility. If you would invest 273.00 in Oxford Nanopore Technologies on November 9, 2024 and sell it today you would lose (100.00) from holding Oxford Nanopore Technologies or give up 36.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lineage Cell Therapeutics vs. Oxford Nanopore Technologies
Performance |
| Timeline |
| Lineage Cell Therapeutics |
| Oxford Nanopore Tech |
Lineage Cell and Oxford Nanopore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lineage Cell and Oxford Nanopore
The main advantage of trading using opposite Lineage Cell and Oxford Nanopore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lineage Cell position performs unexpectedly, Oxford Nanopore 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 Nanopore will offset losses from the drop in Oxford Nanopore's long position.| Lineage Cell vs. MAIA Biotechnology | Lineage Cell vs. Armata Pharmaceuticals | Lineage Cell vs. Portage Biotech | Lineage Cell vs. Cadrenal Therapeutics, Common |
| Oxford Nanopore vs. Lineage Cell Therapeutics | Oxford Nanopore vs. Cadrenal Therapeutics, Common | Oxford Nanopore vs. ImmuCell | Oxford Nanopore vs. Braxia Scientific 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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