Correlation Between Oncolytics Biotech and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both Oncolytics Biotech and Pembina Pipeline 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 Pembina Pipeline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncolytics Biotech and Pembina Pipeline Corp, you can compare the effects of market volatilities on Oncolytics Biotech and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncolytics Biotech and Pembina Pipeline.
Diversification Opportunities for Oncolytics Biotech and Pembina Pipeline
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oncolytics and Pembina is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oncolytics Biotech and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of Oncolytics Biotech i.e., Oncolytics Biotech and Pembina Pipeline go up and down completely randomly.
Pair Corralation between Oncolytics Biotech and Pembina Pipeline
Assuming the 90 days trading horizon Oncolytics Biotech is expected to under-perform the Pembina Pipeline. In addition to that, Oncolytics Biotech is 6.92 times more volatile than Pembina Pipeline Corp. It trades about -0.25 of its total potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.28 per unit of volatility. If you would invest 2,252 in Pembina Pipeline Corp on November 2, 2024 and sell it today you would earn a total of 79.00 from holding Pembina Pipeline Corp or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oncolytics Biotech vs. Pembina Pipeline Corp
Performance |
| Timeline |
| Oncolytics Biotech |
| Pembina Pipeline Corp |
Oncolytics Biotech and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncolytics Biotech and Pembina Pipeline
The main advantage of trading using opposite Oncolytics Biotech and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncolytics Biotech position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| Oncolytics Biotech vs. Theratechnologies | Oncolytics Biotech vs. Aptose Biosciences | Oncolytics Biotech vs. Resverlogix Corp |
| Pembina Pipeline vs. Algoma Steel Group | Pembina Pipeline vs. Highwood Asset Management | Pembina Pipeline vs. Tree Island Steel | Pembina Pipeline vs. Maple Leaf Foods |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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