Correlation Between Oncolytics Biotech and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Oncolytics Biotech and Stoke Therapeutics 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 Stoke Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncolytics Biotech and Stoke Therapeutics, you can compare the effects of market volatilities on Oncolytics Biotech and Stoke Therapeutics 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 Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncolytics Biotech and Stoke Therapeutics.
Diversification Opportunities for Oncolytics Biotech and Stoke Therapeutics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oncolytics and Stoke is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Oncolytics Biotech and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics 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 Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of Oncolytics Biotech i.e., Oncolytics Biotech and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Oncolytics Biotech and Stoke Therapeutics
Given the investment horizon of 90 days Oncolytics Biotech is expected to generate 1.52 times more return on investment than Stoke Therapeutics. However, Oncolytics Biotech is 1.52 times more volatile than Stoke Therapeutics. It trades about -0.01 of its potential returns per unit of risk. Stoke Therapeutics is currently generating about -0.1 per unit of risk. If you would invest 99.00 in Oncolytics Biotech on September 5, 2024 and sell it today you would lose (11.00) from holding Oncolytics Biotech or give up 11.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Oncolytics Biotech vs. Stoke Therapeutics
Performance |
Timeline |
Oncolytics Biotech |
Stoke Therapeutics |
Oncolytics Biotech and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oncolytics Biotech and Stoke Therapeutics
The main advantage of trading using opposite Oncolytics Biotech and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncolytics Biotech position performs unexpectedly, Stoke Therapeutics 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 Stoke Therapeutics will offset losses from the drop in Stoke Therapeutics' long position.Oncolytics Biotech vs. Candel Therapeutics | Oncolytics Biotech vs. Cingulate Warrants | Oncolytics Biotech vs. Unicycive Therapeutics | Oncolytics Biotech vs. Cardio Diagnostics Holdings |
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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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