Correlation Between Onconova Therapeutics and Ibio
Can any of the company-specific risk be diversified away by investing in both Onconova Therapeutics and Ibio 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 Ibio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onconova Therapeutics and Ibio Inc, you can compare the effects of market volatilities on Onconova Therapeutics and Ibio 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 Ibio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onconova Therapeutics and Ibio.
Diversification Opportunities for Onconova Therapeutics and Ibio
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Onconova and Ibio is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Onconova Therapeutics and Ibio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibio Inc 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 Ibio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibio Inc has no effect on the direction of Onconova Therapeutics i.e., Onconova Therapeutics and Ibio go up and down completely randomly.
Pair Corralation between Onconova Therapeutics and Ibio
Given the investment horizon of 90 days Onconova Therapeutics is expected to generate 0.61 times more return on investment than Ibio. However, Onconova Therapeutics is 1.64 times less risky than Ibio. It trades about 0.06 of its potential returns per unit of risk. Ibio Inc is currently generating about 0.02 per unit of risk. If you would invest 76.00 in Onconova Therapeutics on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Onconova Therapeutics or generate 34.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Onconova Therapeutics vs. Ibio Inc
Performance |
| Timeline |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ibio Inc |
Onconova Therapeutics and Ibio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onconova Therapeutics and Ibio
The main advantage of trading using opposite Onconova Therapeutics and Ibio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onconova Therapeutics position performs unexpectedly, Ibio 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 Ibio will offset losses from the drop in Ibio's long position.| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
| Ibio vs. Jaguar Animal Health | Ibio vs. GeoVax Labs | Ibio vs. Ocugen Inc | Ibio vs. Tonix Pharmaceuticals Holding |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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