Correlation Between China Health and Oncologix Tech

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

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

Diversification Opportunities for China Health and Oncologix Tech

0.0

Correlation Coefficient

China Health  Oncologix Tech

Pay attention - limited upside

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

Pair Corralation between China Health and Oncologix Tech

If you would invest  0.01  in Oncologix Tech on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Oncologix Tech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

China Health Management  vs.  Oncologix Tech

China Health Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days China Health Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Oncologix Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with China Health and Oncologix Tech

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

The idea behind China Health Management and Oncologix Tech 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.