Correlation Between OmniAb and Ocugen
Can any of the company-specific risk be diversified away by investing in both OmniAb and Ocugen 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 OmniAb and Ocugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OmniAb Inc and Ocugen Inc, you can compare the effects of market volatilities on OmniAb and Ocugen 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 OmniAb with a short position of Ocugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of OmniAb and Ocugen.
Diversification Opportunities for OmniAb and Ocugen
Very weak diversification
The 3 months correlation between OmniAb and Ocugen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding OmniAb Inc and Ocugen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocugen Inc and OmniAb 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 OmniAb Inc are associated (or correlated) with Ocugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocugen Inc has no effect on the direction of OmniAb i.e., OmniAb and Ocugen go up and down completely randomly.
Pair Corralation between OmniAb and Ocugen
Given the investment horizon of 90 days OmniAb Inc is expected to generate 0.66 times more return on investment than Ocugen. However, OmniAb Inc is 1.52 times less risky than Ocugen. It trades about 0.03 of its potential returns per unit of risk. Ocugen Inc is currently generating about -0.07 per unit of risk. If you would invest 387.00 in OmniAb Inc on August 27, 2024 and sell it today you would earn a total of 5.00 from holding OmniAb Inc or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OmniAb Inc vs. Ocugen Inc
Performance |
| Timeline |
| OmniAb Inc |
| Ocugen Inc |
OmniAb and Ocugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OmniAb and Ocugen
The main advantage of trading using opposite OmniAb and Ocugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OmniAb position performs unexpectedly, Ocugen 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 Ocugen will offset losses from the drop in Ocugen's long position.| OmniAb vs. Legend Biotech Corp | OmniAb vs. Verona Pharma PLC | OmniAb vs. Ideaya Biosciences | OmniAb vs. Iteos 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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