Correlation Between Onconova Therapeutics and Mustang Bio
Can any of the company-specific risk be diversified away by investing in both Onconova Therapeutics and Mustang Bio 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 Mustang Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onconova Therapeutics and Mustang Bio, you can compare the effects of market volatilities on Onconova Therapeutics and Mustang Bio 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 Mustang Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onconova Therapeutics and Mustang Bio.
Diversification Opportunities for Onconova Therapeutics and Mustang Bio
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Onconova and Mustang is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Onconova Therapeutics and Mustang Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mustang Bio 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 Mustang Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mustang Bio has no effect on the direction of Onconova Therapeutics i.e., Onconova Therapeutics and Mustang Bio go up and down completely randomly.
Pair Corralation between Onconova Therapeutics and Mustang Bio
If you would invest 154.00 in Mustang Bio on September 3, 2024 and sell it today you would lose (135.00) from holding Mustang Bio or give up 87.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Onconova Therapeutics vs. Mustang Bio
Performance |
| Timeline |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mustang Bio |
Onconova Therapeutics and Mustang Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onconova Therapeutics and Mustang Bio
The main advantage of trading using opposite Onconova Therapeutics and Mustang Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onconova Therapeutics position performs unexpectedly, Mustang Bio 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 Mustang Bio will offset losses from the drop in Mustang Bio's long position.| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
| Mustang Bio vs. Checkpoint Therapeutics | Mustang Bio vs. Reviva Pharmaceuticals Holdings | Mustang Bio vs. Fortress Biotech Pref | Mustang Bio vs. Kodiak Sciences |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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