Correlation Between Oncimmune Holdings and Mercantile Investment
Can any of the company-specific risk be diversified away by investing in both Oncimmune Holdings and Mercantile Investment 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 Oncimmune Holdings and Mercantile Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncimmune Holdings plc and The Mercantile Investment, you can compare the effects of market volatilities on Oncimmune Holdings and Mercantile Investment 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 Oncimmune Holdings with a short position of Mercantile Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncimmune Holdings and Mercantile Investment.
Diversification Opportunities for Oncimmune Holdings and Mercantile Investment
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oncimmune and Mercantile is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oncimmune Holdings plc and The Mercantile Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Mercantile Investment and Oncimmune Holdings 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 Oncimmune Holdings plc are associated (or correlated) with Mercantile Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Mercantile Investment has no effect on the direction of Oncimmune Holdings i.e., Oncimmune Holdings and Mercantile Investment go up and down completely randomly.
Pair Corralation between Oncimmune Holdings and Mercantile Investment
Assuming the 90 days trading horizon Oncimmune Holdings plc is expected to generate 1.03 times more return on investment than Mercantile Investment. However, Oncimmune Holdings is 1.03 times more volatile than The Mercantile Investment. It trades about 0.03 of its potential returns per unit of risk. The Mercantile Investment is currently generating about -0.07 per unit of risk. If you would invest 1,525 in Oncimmune Holdings plc on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Oncimmune Holdings plc or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncimmune Holdings plc vs. The Mercantile Investment
Performance |
| Timeline |
| Oncimmune Holdings plc |
| The Mercantile Investment |
Oncimmune Holdings and Mercantile Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncimmune Holdings and Mercantile Investment
The main advantage of trading using opposite Oncimmune Holdings and Mercantile Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncimmune Holdings position performs unexpectedly, Mercantile Investment 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 Mercantile Investment will offset losses from the drop in Mercantile Investment's long position.| Oncimmune Holdings vs. JD Sports Fashion | Oncimmune Holdings vs. Polar Capital Technology | Oncimmune Holdings vs. Science in Sport | Oncimmune Holdings vs. Universal Display Corp |
| Mercantile Investment vs. LPKF Laser Electronics | Mercantile Investment vs. Gaming Realms plc | Mercantile Investment vs. Compal Electronics GDR | Mercantile Investment vs. Flow Traders NV |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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