Correlation Between Oxford Nanopore and AgeX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Oxford Nanopore and AgeX 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 Oxford Nanopore and AgeX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Nanopore Technologies and AgeX Therapeutics, you can compare the effects of market volatilities on Oxford Nanopore and AgeX 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 Oxford Nanopore with a short position of AgeX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Nanopore and AgeX Therapeutics.
Diversification Opportunities for Oxford Nanopore and AgeX Therapeutics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oxford and AgeX is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and AgeX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgeX Therapeutics and Oxford Nanopore 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 Oxford Nanopore Technologies are associated (or correlated) with AgeX Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgeX Therapeutics has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and AgeX Therapeutics go up and down completely randomly.
Pair Corralation between Oxford Nanopore and AgeX Therapeutics
Assuming the 90 days horizon Oxford Nanopore Technologies is expected to under-perform the AgeX Therapeutics. But the pink sheet apears to be less risky and, when comparing its historical volatility, Oxford Nanopore Technologies is 1.69 times less risky than AgeX Therapeutics. The pink sheet trades about -0.01 of its potential returns per unit of risk. The AgeX Therapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 58.00 in AgeX Therapeutics on August 29, 2024 and sell it today you would earn a total of 16.00 from holding AgeX Therapeutics or generate 27.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 13.74% |
| Values | Daily Returns |
Oxford Nanopore Technologies vs. AgeX Therapeutics
Performance |
| Timeline |
| Oxford Nanopore Tech |
| AgeX Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oxford Nanopore and AgeX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Nanopore and AgeX Therapeutics
The main advantage of trading using opposite Oxford Nanopore and AgeX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Nanopore position performs unexpectedly, AgeX 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 AgeX Therapeutics will offset losses from the drop in AgeX Therapeutics' long position.The idea behind Oxford Nanopore Technologies and AgeX Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AgeX Therapeutics vs. MAIA Biotechnology | AgeX Therapeutics vs. Larimar Therapeutics | AgeX Therapeutics vs. Lyra Therapeutics | AgeX Therapeutics vs. Lineage Cell Therapeutics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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