Correlation Between Oxford Nanopore and Genscript Biotech
Can any of the company-specific risk be diversified away by investing in both Oxford Nanopore and Genscript Biotech 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 Genscript Biotech 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 Genscript Biotech, you can compare the effects of market volatilities on Oxford Nanopore and Genscript Biotech 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 Genscript Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Nanopore and Genscript Biotech.
Diversification Opportunities for Oxford Nanopore and Genscript Biotech
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oxford and Genscript is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech 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 Genscript Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genscript Biotech has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and Genscript Biotech go up and down completely randomly.
Pair Corralation between Oxford Nanopore and Genscript Biotech
Assuming the 90 days horizon Oxford Nanopore Technologies is expected to generate 1.69 times more return on investment than Genscript Biotech. However, Oxford Nanopore is 1.69 times more volatile than Genscript Biotech. It trades about 0.08 of its potential returns per unit of risk. Genscript Biotech is currently generating about 0.01 per unit of risk. If you would invest 160.00 in Oxford Nanopore Technologies on October 26, 2024 and sell it today you would earn a total of 22.00 from holding Oxford Nanopore Technologies or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.86% |
| Values | Daily Returns |
Oxford Nanopore Technologies vs. Genscript Biotech
Performance |
| Timeline |
| Oxford Nanopore Tech |
| Genscript Biotech |
Oxford Nanopore and Genscript Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Nanopore and Genscript Biotech
The main advantage of trading using opposite Oxford Nanopore and Genscript Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Nanopore position performs unexpectedly, Genscript Biotech 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 Genscript Biotech will offset losses from the drop in Genscript Biotech'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 |
| Genscript Biotech vs. Telix Pharmaceuticals Limited | Genscript Biotech vs. Keros Therapeutics | Genscript Biotech vs. Zentalis Pharmaceuticals Llc | Genscript Biotech vs. Innovent Biologics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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