Correlation Between United States and Oncimmune Holdings

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

By analyzing existing cross correlation between United States Steel and Oncimmune Holdings plc, you can compare the effects of market volatilities on United States 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 United States with a short position of Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Oncimmune Holdings.

Diversification Opportunities for United States and Oncimmune Holdings

-0.72

Correlation Coefficient

United States  Oncimmune Holdings

Pay attention - limited upside

The 3 months correlation between United and Oncimmune is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel 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 United States 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 United States Steel 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 United States i.e., United States and Oncimmune Holdings go up and down completely randomly.

Pair Corralation between United States and Oncimmune Holdings

Assuming the 90 days trading horizon United States Steel is expected to generate 0.25 times more return on investment than Oncimmune Holdings. However, United States Steel is 4.08 times less risky than Oncimmune Holdings. It trades about 0.18 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about -0.33 per unit of risk. If you would invest  3,085  in United States Steel on December 23, 2024 and sell it today you would earn a total of  1,016  from holding United States Steel or generate 32.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	92.19%
Values	Daily Returns

United States Steel  vs.  Oncimmune Holdings plc

United States Steel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in United States Steel are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, United States unveiled solid returns over the last few months and may actually be approaching a breakup point.

Oncimmune Holdings plc

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with United States and Oncimmune Holdings

The main advantage of trading using opposite United States and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.

The idea behind United States Steel and Oncimmune Holdings plc 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.