Correlation Between Oncimmune Holdings and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Oncimmune Holdings and SPDR SP 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 SPDR SP 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 SPDR SP Materials, you can compare the effects of market volatilities on Oncimmune Holdings and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncimmune Holdings and SPDR SP.
Diversification Opportunities for Oncimmune Holdings and SPDR SP
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oncimmune and SPDR is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Oncimmune Holdings plc and SPDR SP Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Materials 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Materials has no effect on the direction of Oncimmune Holdings i.e., Oncimmune Holdings and SPDR SP go up and down completely randomly.
Pair Corralation between Oncimmune Holdings and SPDR SP
Assuming the 90 days trading horizon Oncimmune Holdings plc is expected to under-perform the SPDR SP. In addition to that, Oncimmune Holdings is 6.34 times more volatile than SPDR SP Materials. It trades about -0.01 of its total potential returns per unit of risk. SPDR SP Materials is currently generating about 0.05 per unit of volatility. If you would invest 4,364 in SPDR SP Materials on August 29, 2024 and sell it today you would earn a total of 231.00 from holding SPDR SP Materials or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncimmune Holdings plc vs. SPDR SP Materials
Performance |
| Timeline |
| Oncimmune Holdings plc |
| SPDR SP Materials |
Oncimmune Holdings and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncimmune Holdings and SPDR SP
The main advantage of trading using opposite Oncimmune Holdings and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncimmune Holdings position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP'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 |
| SPDR SP vs. SPDR Dow Jones | SPDR SP vs. SPDR SP Dividend | SPDR SP vs. SPDR Barclays Euro | SPDR SP vs. SPDR SP Consumer |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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