Correlation Between CHIH and Loncar Cancer

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

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

Diversification Opportunities for CHIH and Loncar Cancer

0.63

Correlation Coefficient

CHIH  Loncar Cancer

Poor diversification

The 3 months correlation between CHIH and Loncar is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CHIH and Loncar Cancer Immunotherapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loncar Cancer Immuno and CHIH 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 CHIH are associated (or correlated) with Loncar Cancer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loncar Cancer Immuno has no effect on the direction of CHIH i.e., CHIH and Loncar Cancer go up and down completely randomly.

Pair Corralation between CHIH and Loncar Cancer

Given the investment horizon of 90 days CHIH is expected to under-perform the Loncar Cancer. But the etf apears to be less risky and, when comparing its historical volatility, CHIH is 1.26 times less risky than Loncar Cancer. The etf trades about -0.06 of its potential returns per unit of risk. The Loncar Cancer Immunotherapy is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,359  in Loncar Cancer Immunotherapy on September 21, 2024 and sell it today you would lose (162.20) from holding Loncar Cancer Immunotherapy or give up 11.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	28.23%
Values	Daily Returns

CHIH  vs.  Loncar Cancer Immunotherapy

CHIH

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHIH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, CHIH is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Loncar Cancer Immuno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loncar Cancer Immunotherapy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Etf's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with CHIH and Loncar Cancer

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

The idea behind CHIH and Loncar Cancer Immunotherapy 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.