Correlation Between Weiss Korea and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Weiss Korea and Oncimmune Holdings 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 Weiss Korea and Oncimmune Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weiss Korea Opportunity and Oncimmune Holdings plc, you can compare the effects of market volatilities on Weiss Korea and Oncimmune Holdings 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 Weiss Korea with a short position of Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weiss Korea and Oncimmune Holdings.
Diversification Opportunities for Weiss Korea and Oncimmune Holdings
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Weiss and Oncimmune is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Weiss Korea Opportunity and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings plc and Weiss Korea 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 Weiss Korea Opportunity are associated (or correlated) with Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Weiss Korea i.e., Weiss Korea and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Weiss Korea and Oncimmune Holdings
Assuming the 90 days trading horizon Weiss Korea Opportunity is expected to generate 0.36 times more return on investment than Oncimmune Holdings. However, Weiss Korea Opportunity is 2.75 times less risky than Oncimmune Holdings. It trades about 0.23 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about -0.48 per unit of risk. If you would invest 13,600 in Weiss Korea Opportunity on November 27, 2024 and sell it today you would earn a total of 3,042 from holding Weiss Korea Opportunity or generate 22.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weiss Korea Opportunity vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Weiss Korea Opportunity |
| Oncimmune Holdings plc |
Weiss Korea and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weiss Korea and Oncimmune Holdings
The main advantage of trading using opposite Weiss Korea and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weiss Korea position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Weiss Korea vs. Atalaya Mining | Weiss Korea vs. Indutrade AB | Weiss Korea vs. Flow Traders NV | Weiss Korea vs. AfriTin Mining |
| Oncimmune Holdings vs. Catalyst Media Group | Oncimmune Holdings vs. Alliance Data Systems | Oncimmune Holdings vs. Intermediate Capital Group | Oncimmune Holdings vs. Public Storage |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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