Correlation Between Oxford Nanopore and BiOasis Technologies
Can any of the company-specific risk be diversified away by investing in both Oxford Nanopore and BiOasis Technologies 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 BiOasis Technologies 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 biOasis Technologies, you can compare the effects of market volatilities on Oxford Nanopore and BiOasis Technologies 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 BiOasis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Nanopore and BiOasis Technologies.
Diversification Opportunities for Oxford Nanopore and BiOasis Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxford and BiOasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies 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 BiOasis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and BiOasis Technologies go up and down completely randomly.
Pair Corralation between Oxford Nanopore and BiOasis Technologies
Assuming the 90 days horizon Oxford Nanopore is expected to generate 4.5 times less return on investment than BiOasis Technologies. But when comparing it to its historical volatility, Oxford Nanopore Technologies is 6.37 times less risky than BiOasis Technologies. It trades about 0.08 of its potential returns per unit of risk. biOasis Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.40 in biOasis Technologies on August 29, 2024 and sell it today you would lose (0.39) from holding biOasis Technologies or give up 97.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Nanopore Technologies vs. biOasis Technologies
Performance |
| Timeline |
| Oxford Nanopore Tech |
| biOasis Technologies |
Oxford Nanopore and BiOasis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Nanopore and BiOasis Technologies
The main advantage of trading using opposite Oxford Nanopore and BiOasis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Nanopore position performs unexpectedly, BiOasis Technologies 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 BiOasis Technologies will offset losses from the drop in BiOasis Technologies' long position.The idea behind Oxford Nanopore Technologies and biOasis Technologies 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.| BiOasis Technologies vs. Rezolute | BiOasis Technologies vs. Tempest Therapeutics | BiOasis Technologies vs. Forte Biosciences | BiOasis Technologies vs. Dyadic International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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