Correlation Between Oculis Holding and Equillium
Can any of the company-specific risk be diversified away by investing in both Oculis Holding and Equillium 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 Oculis Holding and Equillium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oculis Holding AG and Equillium, you can compare the effects of market volatilities on Oculis Holding and Equillium 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 Oculis Holding with a short position of Equillium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oculis Holding and Equillium.
Diversification Opportunities for Oculis Holding and Equillium
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oculis and Equillium is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Oculis Holding AG and Equillium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equillium and Oculis Holding 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 Oculis Holding AG are associated (or correlated) with Equillium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equillium has no effect on the direction of Oculis Holding i.e., Oculis Holding and Equillium go up and down completely randomly.
Pair Corralation between Oculis Holding and Equillium
Assuming the 90 days horizon Oculis Holding AG is expected to under-perform the Equillium. But the stock apears to be less risky and, when comparing its historical volatility, Oculis Holding AG is 1.38 times less risky than Equillium. The stock trades about -0.29 of its potential returns per unit of risk. The Equillium is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Equillium on December 6, 2024 and sell it today you would earn a total of 6.00 from holding Equillium or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Oculis Holding AG vs. Equillium
Performance |
| Timeline |
| Oculis Holding AG |
| Equillium |
Oculis Holding and Equillium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oculis Holding and Equillium
The main advantage of trading using opposite Oculis Holding and Equillium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oculis Holding position performs unexpectedly, Equillium 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 Equillium will offset losses from the drop in Equillium's long position.| Oculis Holding vs. The Andersons | ||
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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