Correlation Between Oxford Nanopore and ATAI Life
Can any of the company-specific risk be diversified away by investing in both Oxford Nanopore and ATAI Life 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 ATAI Life 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 ATAI Life Sciences, you can compare the effects of market volatilities on Oxford Nanopore and ATAI Life 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 ATAI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Nanopore and ATAI Life.
Diversification Opportunities for Oxford Nanopore and ATAI Life
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and ATAI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and ATAI Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATAI Life Sciences 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 ATAI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATAI Life Sciences has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and ATAI Life go up and down completely randomly.
Pair Corralation between Oxford Nanopore and ATAI Life
Assuming the 90 days horizon Oxford Nanopore is expected to generate 3.81 times less return on investment than ATAI Life. In addition to that, Oxford Nanopore is 1.02 times more volatile than ATAI Life Sciences. It trades about 0.1 of its total potential returns per unit of risk. ATAI Life Sciences is currently generating about 0.38 per unit of volatility. If you would invest 106.00 in ATAI Life Sciences on September 1, 2024 and sell it today you would earn a total of 67.00 from holding ATAI Life Sciences or generate 63.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Nanopore Technologies vs. ATAI Life Sciences
Performance |
| Timeline |
| Oxford Nanopore Tech |
| ATAI Life Sciences |
Oxford Nanopore and ATAI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Nanopore and ATAI Life
The main advantage of trading using opposite Oxford Nanopore and ATAI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Nanopore position performs unexpectedly, ATAI Life 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 ATAI Life will offset losses from the drop in ATAI Life's long position.| Oxford Nanopore vs. Lineage Cell Therapeutics | Oxford Nanopore vs. Cadrenal Therapeutics, Common | Oxford Nanopore vs. ImmuCell | Oxford Nanopore vs. Braxia Scientific Corp |
| ATAI Life vs. Mind Medicine | ATAI Life vs. Seelos Therapeutics | ATAI Life vs. GH Research PLC | ATAI Life vs. Cybin Inc |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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