Correlation Between Oxford Nanopore and HCW Biologics
Can any of the company-specific risk be diversified away by investing in both Oxford Nanopore and HCW Biologics 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 HCW Biologics 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 HCW Biologics, you can compare the effects of market volatilities on Oxford Nanopore and HCW Biologics 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 HCW Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Nanopore and HCW Biologics.
Diversification Opportunities for Oxford Nanopore and HCW Biologics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oxford and HCW is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and HCW Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCW Biologics 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 HCW Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCW Biologics has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and HCW Biologics go up and down completely randomly.
Pair Corralation between Oxford Nanopore and HCW Biologics
Assuming the 90 days horizon Oxford Nanopore is expected to generate 10.98 times less return on investment than HCW Biologics. But when comparing it to its historical volatility, Oxford Nanopore Technologies is 10.67 times less risky than HCW Biologics. It trades about 0.13 of its potential returns per unit of risk. HCW Biologics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 43.00 in HCW Biologics on September 3, 2024 and sell it today you would earn a total of 4.00 from holding HCW Biologics or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Nanopore Technologies vs. HCW Biologics
Performance |
| Timeline |
| Oxford Nanopore Tech |
| HCW Biologics |
Oxford Nanopore and HCW Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Nanopore and HCW Biologics
The main advantage of trading using opposite Oxford Nanopore and HCW Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Nanopore position performs unexpectedly, HCW Biologics 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 HCW Biologics will offset losses from the drop in HCW Biologics' long position.| Oxford Nanopore vs. Therapeutic Solutions International | Oxford Nanopore vs. Alpha Cognition | Oxford Nanopore vs. Vg Life Sciences | Oxford Nanopore vs. Adagene |
| HCW Biologics vs. Anebulo Pharmaceuticals | HCW Biologics vs. Rezolute | HCW Biologics vs. Eliem Therapeutics | HCW Biologics vs. Molecular Partners AG |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |