Correlation Between Oncolytics Biotech and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both Oncolytics Biotech and Costco Wholesale 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 Costco Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncolytics Biotech and Costco Wholesale Corp, you can compare the effects of market volatilities on Oncolytics Biotech and Costco Wholesale 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 Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncolytics Biotech and Costco Wholesale.
Diversification Opportunities for Oncolytics Biotech and Costco Wholesale
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oncolytics and Costco is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Oncolytics Biotech and Costco Wholesale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale Corp 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 Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale Corp has no effect on the direction of Oncolytics Biotech i.e., Oncolytics Biotech and Costco Wholesale go up and down completely randomly.
Pair Corralation between Oncolytics Biotech and Costco Wholesale
Assuming the 90 days trading horizon Oncolytics Biotech is expected to generate 5.9 times more return on investment than Costco Wholesale. However, Oncolytics Biotech is 5.9 times more volatile than Costco Wholesale Corp. It trades about 0.05 of its potential returns per unit of risk. Costco Wholesale Corp is currently generating about -0.2 per unit of risk. If you would invest 123.00 in Oncolytics Biotech on October 11, 2024 and sell it today you would earn a total of 3.00 from holding Oncolytics Biotech or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncolytics Biotech vs. Costco Wholesale Corp
Performance |
| Timeline |
| Oncolytics Biotech |
| Costco Wholesale Corp |
Oncolytics Biotech and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncolytics Biotech and Costco Wholesale
The main advantage of trading using opposite Oncolytics Biotech and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncolytics Biotech position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| Oncolytics Biotech vs. Theratechnologies | Oncolytics Biotech vs. Aptose Biosciences | Oncolytics Biotech vs. Resverlogix Corp |
| Costco Wholesale vs. Sun Peak Metals | Costco Wholesale vs. Oncolytics Biotech | Costco Wholesale vs. Birchtech Corp | Costco Wholesale vs. Micron Technology, |
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 CEOs Directory module to screen CEOs from public companies around the world.
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