Correlation Between OptiNose and Connect Biopharma
Can any of the company-specific risk be diversified away by investing in both OptiNose and Connect Biopharma 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 OptiNose and Connect Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OptiNose and Connect Biopharma Holdings, you can compare the effects of market volatilities on OptiNose and Connect Biopharma 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 OptiNose with a short position of Connect Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiNose and Connect Biopharma.
Diversification Opportunities for OptiNose and Connect Biopharma
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OptiNose and Connect is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding OptiNose and Connect Biopharma Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Connect Biopharma and OptiNose 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 OptiNose are associated (or correlated) with Connect Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Connect Biopharma has no effect on the direction of OptiNose i.e., OptiNose and Connect Biopharma go up and down completely randomly.
Pair Corralation between OptiNose and Connect Biopharma
Given the investment horizon of 90 days OptiNose is expected to under-perform the Connect Biopharma. In addition to that, OptiNose is 1.26 times more volatile than Connect Biopharma Holdings. It trades about -0.14 of its total potential returns per unit of risk. Connect Biopharma Holdings is currently generating about -0.04 per unit of volatility. If you would invest 129.00 in Connect Biopharma Holdings on September 3, 2024 and sell it today you would lose (23.00) from holding Connect Biopharma Holdings or give up 17.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OptiNose vs. Connect Biopharma Holdings
Performance |
| Timeline |
| OptiNose |
| Connect Biopharma |
OptiNose and Connect Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptiNose and Connect Biopharma
The main advantage of trading using opposite OptiNose and Connect Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiNose position performs unexpectedly, Connect Biopharma 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 Connect Biopharma will offset losses from the drop in Connect Biopharma's long position.| OptiNose vs. Connect Biopharma Holdings | OptiNose vs. Acumen Pharmaceuticals | OptiNose vs. Nuvation Bio | OptiNose vs. Eledon Pharmaceuticals |
| Connect Biopharma vs. Seres Therapeutics | Connect Biopharma vs. DiaMedica Therapeutics | Connect Biopharma vs. Lyra Therapeutics | Connect Biopharma vs. Centessa Pharmaceuticals PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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