Correlation Between MAIA Biotechnology and Oxford Nanopore
Can any of the company-specific risk be diversified away by investing in both MAIA Biotechnology 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 MAIA Biotechnology and Oxford Nanopore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAIA Biotechnology and Oxford Nanopore Technologies, you can compare the effects of market volatilities on MAIA Biotechnology 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 MAIA Biotechnology with a short position of Oxford Nanopore. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAIA Biotechnology and Oxford Nanopore.
Diversification Opportunities for MAIA Biotechnology and Oxford Nanopore
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAIA and Oxford is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding MAIA Biotechnology 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 MAIA Biotechnology 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 MAIA Biotechnology 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 MAIA Biotechnology i.e., MAIA Biotechnology and Oxford Nanopore go up and down completely randomly.
Pair Corralation between MAIA Biotechnology and Oxford Nanopore
Given the investment horizon of 90 days MAIA Biotechnology is expected to under-perform the Oxford Nanopore. In addition to that, MAIA Biotechnology is 1.03 times more volatile than Oxford Nanopore Technologies. It trades about -0.06 of its total potential returns per unit of risk. Oxford Nanopore Technologies is currently generating about 0.01 per unit of volatility. If you would invest 191.00 in Oxford Nanopore Technologies on August 29, 2024 and sell it today you would lose (4.00) from holding Oxford Nanopore Technologies or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAIA Biotechnology vs. Oxford Nanopore Technologies
Performance |
| Timeline |
| MAIA Biotechnology |
| Oxford Nanopore Tech |
MAIA Biotechnology and Oxford Nanopore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAIA Biotechnology and Oxford Nanopore
The main advantage of trading using opposite MAIA Biotechnology and Oxford Nanopore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAIA Biotechnology 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.| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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