Correlation Between Onconova Therapeutics and Guardion Health
Can any of the company-specific risk be diversified away by investing in both Onconova Therapeutics and Guardion Health 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 Onconova Therapeutics and Guardion Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onconova Therapeutics and Guardion Health Sciences, you can compare the effects of market volatilities on Onconova Therapeutics and Guardion Health 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 Onconova Therapeutics with a short position of Guardion Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onconova Therapeutics and Guardion Health.
Diversification Opportunities for Onconova Therapeutics and Guardion Health
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Onconova and Guardion is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Onconova Therapeutics and Guardion Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardion Health Sciences and Onconova Therapeutics 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 Onconova Therapeutics are associated (or correlated) with Guardion Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardion Health Sciences has no effect on the direction of Onconova Therapeutics i.e., Onconova Therapeutics and Guardion Health go up and down completely randomly.
Pair Corralation between Onconova Therapeutics and Guardion Health
Given the investment horizon of 90 days Onconova Therapeutics is expected to generate 1.19 times more return on investment than Guardion Health. However, Onconova Therapeutics is 1.19 times more volatile than Guardion Health Sciences. It trades about 0.05 of its potential returns per unit of risk. Guardion Health Sciences is currently generating about 0.03 per unit of risk. If you would invest 85.00 in Onconova Therapeutics on August 26, 2024 and sell it today you would earn a total of 17.00 from holding Onconova Therapeutics or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.69% |
| Values | Daily Returns |
Onconova Therapeutics vs. Guardion Health Sciences
Performance |
| Timeline |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Onconova Therapeutics and Guardion Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onconova Therapeutics and Guardion Health
The main advantage of trading using opposite Onconova Therapeutics and Guardion Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onconova Therapeutics position performs unexpectedly, Guardion Health 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 Guardion Health will offset losses from the drop in Guardion Health's long position.| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
| Guardion Health vs. Biofrontera | Guardion Health vs. Shuttle Pharmaceuticals | Guardion Health vs. Akanda Corp | Guardion Health vs. China Pharma Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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