Correlation Between Oncolytics Biotech and Bank of America
Can any of the company-specific risk be diversified away by investing in both Oncolytics Biotech and Bank of America 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 Bank of America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncolytics Biotech and Bank of America, you can compare the effects of market volatilities on Oncolytics Biotech and Bank of America 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 Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncolytics Biotech and Bank of America.
Diversification Opportunities for Oncolytics Biotech and Bank of America
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oncolytics and Bank is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oncolytics Biotech and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America 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 Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of Oncolytics Biotech i.e., Oncolytics Biotech and Bank of America go up and down completely randomly.
Pair Corralation between Oncolytics Biotech and Bank of America
Assuming the 90 days trading horizon Oncolytics Biotech is expected to under-perform the Bank of America. In addition to that, Oncolytics Biotech is 2.9 times more volatile than Bank of America. It trades about -0.01 of its total potential returns per unit of risk. Bank of America is currently generating about 0.07 per unit of volatility. If you would invest 2,050 in Bank of America on October 17, 2024 and sell it today you would earn a total of 333.00 from holding Bank of America or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncolytics Biotech vs. Bank of America
Performance |
| Timeline |
| Oncolytics Biotech |
| Bank of America |
Oncolytics Biotech and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncolytics Biotech and Bank of America
The main advantage of trading using opposite Oncolytics Biotech and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncolytics Biotech position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| Oncolytics Biotech vs. Theratechnologies | Oncolytics Biotech vs. Aptose Biosciences | Oncolytics Biotech vs. Resverlogix Corp |
| Bank of America vs. Oncolytics Biotech | Bank of America vs. Big Rock Brewery | Bank of America vs. InPlay Oil Corp | Bank of America vs. Rogers Communications |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |