Correlation Between ChitogenX and Oncotelic Therapeutics

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

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

Diversification Opportunities for ChitogenX and Oncotelic Therapeutics

0.86

Correlation Coefficient

ChitogenX  Oncotelic Therapeutics

Very poor diversification

The 3 months correlation between ChitogenX and Oncotelic is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding ChitogenX and Oncotelic Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncotelic Therapeutics and ChitogenX 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 ChitogenX are associated (or correlated) with Oncotelic Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncotelic Therapeutics has no effect on the direction of ChitogenX i.e., ChitogenX and Oncotelic Therapeutics go up and down completely randomly.

Pair Corralation between ChitogenX and Oncotelic Therapeutics

If you would invest  2.20  in Oncotelic Therapeutics on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Oncotelic Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.56%
Values	Daily Returns

ChitogenX  vs.  Oncotelic Therapeutics

ChitogenX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChitogenX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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.

Pair Trading with ChitogenX and Oncotelic Therapeutics

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

The idea behind ChitogenX and Oncotelic Therapeutics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.