Correlation Between OSE Pharma and Theranexus
Can any of the company-specific risk be diversified away by investing in both OSE Pharma and Theranexus 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 OSE Pharma and Theranexus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSE Pharma SA and Theranexus SA, you can compare the effects of market volatilities on OSE Pharma and Theranexus 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 OSE Pharma with a short position of Theranexus. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSE Pharma and Theranexus.
Diversification Opportunities for OSE Pharma and Theranexus
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OSE and Theranexus is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding OSE Pharma SA and Theranexus SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theranexus SA and OSE Pharma 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 OSE Pharma SA are associated (or correlated) with Theranexus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theranexus SA has no effect on the direction of OSE Pharma i.e., OSE Pharma and Theranexus go up and down completely randomly.
Pair Corralation between OSE Pharma and Theranexus
Assuming the 90 days trading horizon OSE Pharma SA is expected to generate 0.94 times more return on investment than Theranexus. However, OSE Pharma SA is 1.07 times less risky than Theranexus. It trades about 0.07 of its potential returns per unit of risk. Theranexus SA is currently generating about -0.04 per unit of risk. If you would invest 462.00 in OSE Pharma SA on October 12, 2024 and sell it today you would earn a total of 223.00 from holding OSE Pharma SA or generate 48.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSE Pharma SA vs. Theranexus SA
Performance |
| Timeline |
| OSE Pharma SA |
| Theranexus SA |
OSE Pharma and Theranexus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSE Pharma and Theranexus
The main advantage of trading using opposite OSE Pharma and Theranexus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSE Pharma position performs unexpectedly, Theranexus 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 Theranexus will offset losses from the drop in Theranexus' long position.| OSE Pharma vs. Innate Pharma | OSE Pharma vs. Quantum Genomics SA | OSE Pharma vs. Valneva SE | OSE Pharma vs. Poxel SA |
| Theranexus vs. Quantum Genomics SA | Theranexus vs. Biophytis SA | Theranexus vs. Gensight Biologics SA | Theranexus vs. Poxel SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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