Correlation Between Sellas Life and OCUP Old
Can any of the company-specific risk be diversified away by investing in both Sellas Life and OCUP Old 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 Sellas Life and OCUP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and OCUP Old, you can compare the effects of market volatilities on Sellas Life and OCUP Old 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 Sellas Life with a short position of OCUP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and OCUP Old.
Diversification Opportunities for Sellas Life and OCUP Old
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sellas and OCUP is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and OCUP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCUP Old and Sellas Life 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 Sellas Life Sciences are associated (or correlated) with OCUP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCUP Old has no effect on the direction of Sellas Life i.e., Sellas Life and OCUP Old go up and down completely randomly.
Pair Corralation between Sellas Life and OCUP Old
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 0.87 times more return on investment than OCUP Old. However, Sellas Life Sciences is 1.15 times less risky than OCUP Old. It trades about -0.02 of its potential returns per unit of risk. OCUP Old is currently generating about -0.19 per unit of risk. If you would invest 122.00 in Sellas Life Sciences on October 26, 2024 and sell it today you would lose (23.00) from holding Sellas Life Sciences or give up 18.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.03% |
| Values | Daily Returns |
Sellas Life Sciences vs. OCUP Old
Performance |
| Timeline |
| Sellas Life Sciences |
| OCUP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sellas Life and OCUP Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and OCUP Old
The main advantage of trading using opposite Sellas Life and OCUP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, OCUP Old 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 OCUP Old will offset losses from the drop in OCUP Old's long position.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| OCUP Old vs. Reviva Pharmaceuticals Holdings | OCUP Old vs. Protalix Biotherapeutics | OCUP Old vs. Eyepoint Pharmaceuticals | OCUP Old vs. Sellas Life Sciences |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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