Correlation Between Oxford BioDynamics and Protalix Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Oxford BioDynamics and Protalix Biotherapeutics 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 Oxford BioDynamics and Protalix Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford BioDynamics Plc and Protalix Biotherapeutics, you can compare the effects of market volatilities on Oxford BioDynamics and Protalix Biotherapeutics 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 Oxford BioDynamics with a short position of Protalix Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford BioDynamics and Protalix Biotherapeutics.
Diversification Opportunities for Oxford BioDynamics and Protalix Biotherapeutics
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxford and Protalix is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oxford BioDynamics Plc and Protalix Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protalix Biotherapeutics and Oxford BioDynamics 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 Oxford BioDynamics Plc are associated (or correlated) with Protalix Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protalix Biotherapeutics has no effect on the direction of Oxford BioDynamics i.e., Oxford BioDynamics and Protalix Biotherapeutics go up and down completely randomly.
Pair Corralation between Oxford BioDynamics and Protalix Biotherapeutics
If you would invest 173.00 in Protalix Biotherapeutics on October 22, 2024 and sell it today you would earn a total of 49.00 from holding Protalix Biotherapeutics or generate 28.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Oxford BioDynamics Plc vs. Protalix Biotherapeutics
Performance |
| Timeline |
| Oxford BioDynamics Plc |
| Protalix Biotherapeutics |
Oxford BioDynamics and Protalix Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford BioDynamics and Protalix Biotherapeutics
The main advantage of trading using opposite Oxford BioDynamics and Protalix Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford BioDynamics position performs unexpectedly, Protalix Biotherapeutics 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 Protalix Biotherapeutics will offset losses from the drop in Protalix Biotherapeutics' long position.| Oxford BioDynamics vs. Protalix Biotherapeutics | Oxford BioDynamics vs. Seres Therapeutics | Oxford BioDynamics vs. Cidara Therapeutics | Oxford BioDynamics vs. Immunitybio |
| Protalix Biotherapeutics vs. Corvus Pharmaceuticals | Protalix Biotherapeutics vs. Aldeyra | Protalix Biotherapeutics vs. Checkpoint Therapeutics | Protalix Biotherapeutics vs. Cidara Therapeutics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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