Correlation Between Oncimmune Holdings and Surgical Science

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Can any of the company-specific risk be diversified away by investing in both Oncimmune Holdings and Surgical Science 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 Oncimmune Holdings and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncimmune Holdings plc and Surgical Science Sweden, you can compare the effects of market volatilities on Oncimmune Holdings and Surgical Science 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 Oncimmune Holdings with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncimmune Holdings and Surgical Science.

Diversification Opportunities for Oncimmune Holdings and Surgical Science

-0.47
  Correlation Coefficient

Very good diversification

The 3 months correlation between Oncimmune and Surgical is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oncimmune Holdings plc and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Oncimmune Holdings 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 Oncimmune Holdings plc are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Oncimmune Holdings i.e., Oncimmune Holdings and Surgical Science go up and down completely randomly.

Pair Corralation between Oncimmune Holdings and Surgical Science

Assuming the 90 days trading horizon Oncimmune Holdings plc is expected to under-perform the Surgical Science. In addition to that, Oncimmune Holdings is 1.63 times more volatile than Surgical Science Sweden. It trades about -0.01 of its total potential returns per unit of risk. Surgical Science Sweden is currently generating about 0.01 per unit of volatility. If you would invest  16,017  in Surgical Science Sweden on August 26, 2024 and sell it today you would lose (1,527) from holding Surgical Science Sweden or give up 9.53% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.62%
ValuesDaily Returns

Oncimmune Holdings plc  vs.  Surgical Science Sweden

 Performance 
       Timeline  
Oncimmune Holdings plc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oncimmune Holdings plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Oncimmune Holdings is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
Surgical Science Sweden 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Surgical Science Sweden are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Surgical Science may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Oncimmune Holdings and Surgical Science Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oncimmune Holdings and Surgical Science

The main advantage of trading using opposite Oncimmune Holdings and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncimmune Holdings position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.
The idea behind Oncimmune Holdings plc and Surgical Science Sweden pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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