Correlation Between Oncotelic Therapeutics and Ceapro

Can any of the company-specific risk be diversified away by investing in both Oncotelic Therapeutics and Ceapro 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 Oncotelic Therapeutics and Ceapro into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oncotelic Therapeutics and Ceapro Inc, you can compare the effects of market volatilities on Oncotelic Therapeutics and Ceapro 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 Oncotelic Therapeutics with a short position of Ceapro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncotelic Therapeutics and Ceapro.

Diversification Opportunities for Oncotelic Therapeutics and Ceapro

-0.81

Correlation Coefficient

Oncotelic Therapeutics  Ceapro

Pay attention - limited upside

The 3 months correlation between Oncotelic and Ceapro is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Oncotelic Therapeutics and Ceapro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceapro Inc and Oncotelic Therapeutics 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 Oncotelic Therapeutics are associated (or correlated) with Ceapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceapro Inc has no effect on the direction of Oncotelic Therapeutics i.e., Oncotelic Therapeutics and Ceapro go up and down completely randomly.

Pair Corralation between Oncotelic Therapeutics and Ceapro

Given the investment horizon of 90 days Oncotelic Therapeutics is expected to generate 8.22 times less return on investment than Ceapro. But when comparing it to its historical volatility, Oncotelic Therapeutics is 3.82 times less risky than Ceapro. It trades about 0.02 of its potential returns per unit of risk. Ceapro Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  48.00  in Ceapro Inc on September 3, 2024 and sell it today you would earn a total of  545.00  from holding Ceapro Inc or generate 1135.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	37.14%
Values	Daily Returns

Oncotelic Therapeutics  vs.  Ceapro Inc

Oncotelic Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oncotelic Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Oncotelic Therapeutics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Ceapro Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ceapro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ceapro is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Oncotelic Therapeutics and Ceapro

The main advantage of trading using opposite Oncotelic Therapeutics and Ceapro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncotelic Therapeutics position performs unexpectedly, Ceapro 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 Ceapro will offset losses from the drop in Ceapro's long position.

The idea behind Oncotelic Therapeutics and Ceapro Inc 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.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.