Correlation Between Therma Bright and Oncolytics Biotech
Can any of the company-specific risk be diversified away by investing in both Therma Bright 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 Therma Bright and Oncolytics Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Therma Bright and Oncolytics Biotech, you can compare the effects of market volatilities on Therma Bright 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 Therma Bright with a short position of Oncolytics Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Therma Bright and Oncolytics Biotech.
Diversification Opportunities for Therma Bright and Oncolytics Biotech
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Therma and Oncolytics is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Therma Bright and Oncolytics Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncolytics Biotech and Therma Bright 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 Therma Bright 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 Therma Bright i.e., Therma Bright and Oncolytics Biotech go up and down completely randomly.
Pair Corralation between Therma Bright and Oncolytics Biotech
Assuming the 90 days trading horizon Therma Bright is expected to under-perform the Oncolytics Biotech. In addition to that, Therma Bright is 2.7 times more volatile than Oncolytics Biotech. It trades about -0.14 of its total potential returns per unit of risk. Oncolytics Biotech is currently generating about -0.25 per unit of volatility. If you would invest 160.00 in Oncolytics Biotech on September 3, 2024 and sell it today you would lose (28.00) from holding Oncolytics Biotech or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Therma Bright vs. Oncolytics Biotech
Performance |
| Timeline |
| Therma Bright |
| Oncolytics Biotech |
Therma Bright and Oncolytics Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Therma Bright and Oncolytics Biotech
The main advantage of trading using opposite Therma Bright and Oncolytics Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Therma Bright 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.| Therma Bright vs. Solar Alliance Energy | Therma Bright vs. Braille Energy Systems | Therma Bright vs. MedMira | Therma Bright vs. Lite Access Technologies |
| Oncolytics Biotech vs. Theratechnologies | Oncolytics Biotech vs. Aptose Biosciences | Oncolytics Biotech vs. Resverlogix Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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