Correlation Between Ocuphire Pharma and Mink Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ocuphire Pharma and Mink 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 Ocuphire Pharma and Mink Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocuphire Pharma and Mink Therapeutics, you can compare the effects of market volatilities on Ocuphire Pharma and Mink 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 Ocuphire Pharma with a short position of Mink Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocuphire Pharma and Mink Therapeutics.
Diversification Opportunities for Ocuphire Pharma and Mink Therapeutics
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ocuphire and Mink is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ocuphire Pharma and Mink Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mink Therapeutics and Ocuphire Pharma 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 Ocuphire Pharma are associated (or correlated) with Mink Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mink Therapeutics has no effect on the direction of Ocuphire Pharma i.e., Ocuphire Pharma and Mink Therapeutics go up and down completely randomly.
Pair Corralation between Ocuphire Pharma and Mink Therapeutics
Given the investment horizon of 90 days Ocuphire Pharma is expected to under-perform the Mink Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Ocuphire Pharma is 1.31 times less risky than Mink Therapeutics. The stock trades about -0.07 of its potential returns per unit of risk. The Mink Therapeutics is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Mink Therapeutics on September 2, 2024 and sell it today you would lose (145.00) from holding Mink Therapeutics or give up 66.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.28% |
| Values | Daily Returns |
Ocuphire Pharma vs. Mink Therapeutics
Performance |
| Timeline |
| Ocuphire Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mink Therapeutics |
Ocuphire Pharma and Mink Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocuphire Pharma and Mink Therapeutics
The main advantage of trading using opposite Ocuphire Pharma and Mink Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocuphire Pharma position performs unexpectedly, Mink 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 Mink Therapeutics will offset losses from the drop in Mink Therapeutics' long position.| Ocuphire Pharma vs. Reviva Pharmaceuticals Holdings | Ocuphire Pharma vs. Protalix Biotherapeutics | Ocuphire Pharma vs. Eyepoint Pharmaceuticals | Ocuphire Pharma vs. Sellas Life Sciences |
| Mink Therapeutics vs. Tff Pharmaceuticals | Mink Therapeutics vs. Eliem Therapeutics | Mink Therapeutics vs. Inhibrx | Mink Therapeutics vs. Enliven 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |