Correlation Between Oragenics and 22nd Century
Can any of the company-specific risk be diversified away by investing in both Oragenics and 22nd Century 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 22nd Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oragenics and 22nd Century Group, you can compare the effects of market volatilities on Oragenics and 22nd Century 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 22nd Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oragenics and 22nd Century.
Diversification Opportunities for Oragenics and 22nd Century
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oragenics and 22nd is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Oragenics and 22nd Century Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22nd Century Group 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 22nd Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22nd Century Group has no effect on the direction of Oragenics i.e., Oragenics and 22nd Century go up and down completely randomly.
Pair Corralation between Oragenics and 22nd Century
Given the investment horizon of 90 days Oragenics is expected to generate 0.88 times more return on investment than 22nd Century. However, Oragenics is 1.13 times less risky than 22nd Century. It trades about -0.06 of its potential returns per unit of risk. 22nd Century Group is currently generating about -0.56 per unit of risk. If you would invest 31.00 in Oragenics on November 28, 2024 and sell it today you would lose (3.00) from holding Oragenics or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oragenics vs. 22nd Century Group
Performance |
| Timeline |
| Oragenics |
| 22nd Century Group |
Oragenics and 22nd Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oragenics and 22nd Century
The main advantage of trading using opposite Oragenics and 22nd Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oragenics position performs unexpectedly, 22nd Century 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 22nd Century will offset losses from the drop in 22nd Century's long position.The idea behind Oragenics and 22nd Century Group 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.| 22nd Century vs. Turning Point Brands | 22nd Century vs. Green Globe International | 22nd Century vs. Imperial Brands PLC | 22nd Century vs. Kaival Brands Innovations |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets |