Correlation Between AEZS Old and Ocugen

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

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

Diversification Opportunities for AEZS Old and Ocugen

0.0

Correlation Coefficient

AEZS Old  Ocugen

Pay attention - limited upside

The 3 months correlation between AEZS and Ocugen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEZS Old and Ocugen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocugen Inc and AEZS Old 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 AEZS Old are associated (or correlated) with Ocugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocugen Inc has no effect on the direction of AEZS Old i.e., AEZS Old and Ocugen go up and down completely randomly.

Pair Corralation between AEZS Old and Ocugen

If you would invest  614.00  in AEZS Old on October 11, 2024 and sell it today you would earn a total of  0.00  from holding AEZS Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

AEZS Old  vs.  Ocugen Inc

AEZS Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AEZS Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AEZS Old is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Ocugen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ocugen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with AEZS Old and Ocugen

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

The idea behind AEZS Old and Ocugen 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.