Correlation Between Oragenics and Onconova Therapeutics
Can any of the company-specific risk be diversified away by investing in both Oragenics and Onconova 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 Oragenics and Onconova Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oragenics and Onconova Therapeutics, you can compare the effects of market volatilities on Oragenics and Onconova 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 Oragenics with a short position of Onconova Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oragenics and Onconova Therapeutics.
Diversification Opportunities for Oragenics and Onconova Therapeutics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oragenics and Onconova is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Oragenics and Onconova Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconova Therapeutics and Oragenics 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 Oragenics are associated (or correlated) with Onconova Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconova Therapeutics has no effect on the direction of Oragenics i.e., Oragenics and Onconova Therapeutics go up and down completely randomly.
Pair Corralation between Oragenics and Onconova Therapeutics
Given the investment horizon of 90 days Oragenics is expected to generate 2.47 times more return on investment than Onconova Therapeutics. However, Oragenics is 2.47 times more volatile than Onconova Therapeutics. It trades about -0.02 of its potential returns per unit of risk. Onconova Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 300.00 in Oragenics on September 2, 2024 and sell it today you would lose (268.00) from holding Oragenics or give up 89.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
Oragenics vs. Onconova Therapeutics
Performance |
| Timeline |
| Oragenics |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oragenics and Onconova Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oragenics and Onconova Therapeutics
The main advantage of trading using opposite Oragenics and Onconova Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oragenics position performs unexpectedly, Onconova 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 Onconova Therapeutics will offset losses from the drop in Onconova Therapeutics' long position.The idea behind Oragenics and Onconova Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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