Correlation Between Nuvation Bio and Oncternal Therapeutics
Can any of the company-specific risk be diversified away by investing in both Nuvation Bio and Oncternal 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 Nuvation Bio and Oncternal Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvation Bio and Oncternal Therapeutics, you can compare the effects of market volatilities on Nuvation Bio and Oncternal 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 Nuvation Bio with a short position of Oncternal Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvation Bio and Oncternal Therapeutics.
Diversification Opportunities for Nuvation Bio and Oncternal Therapeutics
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuvation and Oncternal is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nuvation Bio and Oncternal Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncternal Therapeutics and Nuvation Bio 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 Nuvation Bio are associated (or correlated) with Oncternal Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncternal Therapeutics has no effect on the direction of Nuvation Bio i.e., Nuvation Bio and Oncternal Therapeutics go up and down completely randomly.
Pair Corralation between Nuvation Bio and Oncternal Therapeutics
Given the investment horizon of 90 days Nuvation Bio is expected to generate 0.43 times more return on investment than Oncternal Therapeutics. However, Nuvation Bio is 2.34 times less risky than Oncternal Therapeutics. It trades about 0.25 of its potential returns per unit of risk. Oncternal Therapeutics is currently generating about -0.25 per unit of risk. If you would invest 234.00 in Nuvation Bio on August 31, 2024 and sell it today you would earn a total of 55.00 from holding Nuvation Bio or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuvation Bio vs. Oncternal Therapeutics
Performance |
| Timeline |
| Nuvation Bio |
| Oncternal Therapeutics |
Nuvation Bio and Oncternal Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvation Bio and Oncternal Therapeutics
The main advantage of trading using opposite Nuvation Bio and Oncternal Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvation Bio position performs unexpectedly, Oncternal 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 Oncternal Therapeutics will offset losses from the drop in Oncternal Therapeutics' long position.| Nuvation Bio vs. Assembly Biosciences | Nuvation Bio vs. Instil Bio | Nuvation Bio vs. Achilles Therapeutics PLC | Nuvation Bio vs. NextCure |
| Oncternal Therapeutics vs. Cue Biopharma | Oncternal Therapeutics vs. Eliem Therapeutics | Oncternal Therapeutics vs. Inhibrx | Oncternal Therapeutics vs. Molecular Partners AG |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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