Correlation Between Postmedia Network and Oncolytics Biotech
Can any of the company-specific risk be diversified away by investing in both Postmedia Network and Oncolytics Biotech 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 Postmedia Network and Oncolytics Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postmedia Network Canada and Oncolytics Biotech, you can compare the effects of market volatilities on Postmedia Network and Oncolytics Biotech 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 Postmedia Network with a short position of Oncolytics Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postmedia Network and Oncolytics Biotech.
Diversification Opportunities for Postmedia Network and Oncolytics Biotech
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Postmedia and Oncolytics is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Postmedia Network Canada and Oncolytics Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncolytics Biotech and Postmedia Network 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 Postmedia Network Canada are associated (or correlated) with Oncolytics Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncolytics Biotech has no effect on the direction of Postmedia Network i.e., Postmedia Network and Oncolytics Biotech go up and down completely randomly.
Pair Corralation between Postmedia Network and Oncolytics Biotech
Assuming the 90 days trading horizon Postmedia Network Canada is expected to generate 0.91 times more return on investment than Oncolytics Biotech. However, Postmedia Network Canada is 1.1 times less risky than Oncolytics Biotech. It trades about 0.0 of its potential returns per unit of risk. Oncolytics Biotech is currently generating about -0.03 per unit of risk. If you would invest 136.00 in Postmedia Network Canada on November 3, 2024 and sell it today you would lose (21.00) from holding Postmedia Network Canada or give up 15.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postmedia Network Canada vs. Oncolytics Biotech
Performance |
| Timeline |
| Postmedia Network Canada |
| Oncolytics Biotech |
Postmedia Network and Oncolytics Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postmedia Network and Oncolytics Biotech
The main advantage of trading using opposite Postmedia Network and Oncolytics Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postmedia Network position performs unexpectedly, Oncolytics Biotech 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 Oncolytics Biotech will offset losses from the drop in Oncolytics Biotech's long position.| Postmedia Network vs. Precision Drilling | Postmedia Network vs. Algoma Steel Group | Postmedia Network vs. WELL Health Technologies | Postmedia Network vs. Reliq Health Technologies |
| Oncolytics Biotech vs. Dynacor Gold Mines | Oncolytics Biotech vs. Sangoma Technologies Corp | Oncolytics Biotech vs. Geodrill Limited | Oncolytics Biotech vs. Biosyent |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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