Correlation Between Oncolytics Biotech and Air Canada
Can any of the company-specific risk be diversified away by investing in both Oncolytics Biotech and Air Canada 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 Oncolytics Biotech and Air Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncolytics Biotech and Air Canada, you can compare the effects of market volatilities on Oncolytics Biotech and Air Canada 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 Oncolytics Biotech with a short position of Air Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncolytics Biotech and Air Canada.
Diversification Opportunities for Oncolytics Biotech and Air Canada
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oncolytics and Air is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Oncolytics Biotech and Air Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Canada and Oncolytics Biotech 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 Oncolytics Biotech are associated (or correlated) with Air Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Canada has no effect on the direction of Oncolytics Biotech i.e., Oncolytics Biotech and Air Canada go up and down completely randomly.
Pair Corralation between Oncolytics Biotech and Air Canada
Assuming the 90 days trading horizon Oncolytics Biotech is expected to under-perform the Air Canada. In addition to that, Oncolytics Biotech is 3.07 times more volatile than Air Canada. It trades about -0.16 of its total potential returns per unit of risk. Air Canada is currently generating about -0.45 per unit of volatility. If you would invest 2,224 in Air Canada on October 25, 2024 and sell it today you would lose (214.00) from holding Air Canada or give up 9.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncolytics Biotech vs. Air Canada
Performance |
| Timeline |
| Oncolytics Biotech |
| Air Canada |
Oncolytics Biotech and Air Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncolytics Biotech and Air Canada
The main advantage of trading using opposite Oncolytics Biotech and Air Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncolytics Biotech position performs unexpectedly, Air Canada 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 Air Canada will offset losses from the drop in Air Canada's long position.| Oncolytics Biotech vs. Theratechnologies | Oncolytics Biotech vs. Aptose Biosciences | Oncolytics Biotech vs. Resverlogix Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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