Correlation Between OncoVista Innovative and BioCardia
Can any of the company-specific risk be diversified away by investing in both OncoVista Innovative and BioCardia 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 OncoVista Innovative and BioCardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OncoVista Innovative Therapies and BioCardia, you can compare the effects of market volatilities on OncoVista Innovative and BioCardia 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 OncoVista Innovative with a short position of BioCardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of OncoVista Innovative and BioCardia.
Diversification Opportunities for OncoVista Innovative and BioCardia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OncoVista and BioCardia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OncoVista Innovative Therapies and BioCardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCardia and OncoVista Innovative 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 OncoVista Innovative Therapies are associated (or correlated) with BioCardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCardia has no effect on the direction of OncoVista Innovative i.e., OncoVista Innovative and BioCardia go up and down completely randomly.
Pair Corralation between OncoVista Innovative and BioCardia
Given the investment horizon of 90 days OncoVista Innovative is expected to generate 15.5 times less return on investment than BioCardia. But when comparing it to its historical volatility, OncoVista Innovative Therapies is 9.37 times less risky than BioCardia. It trades about 0.05 of its potential returns per unit of risk. BioCardia is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 73.00 in BioCardia on November 2, 2024 and sell it today you would lose (73.00) from holding BioCardia or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 43.06% |
| Values | Daily Returns |
OncoVista Innovative Therapies vs. BioCardia
Performance |
| Timeline |
| OncoVista Innovative |
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OncoVista Innovative and BioCardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OncoVista Innovative and BioCardia
The main advantage of trading using opposite OncoVista Innovative and BioCardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OncoVista Innovative position performs unexpectedly, BioCardia 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 BioCardia will offset losses from the drop in BioCardia's long position.| OncoVista Innovative vs. Cyclacel Pharmaceuticals | OncoVista Innovative vs. Amylyx Pharmaceuticals | OncoVista Innovative vs. Axsome Therapeutics | OncoVista Innovative vs. Exelixis |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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