Correlation Between Corvus Pharmaceuticals and OptiNose

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

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

Diversification Opportunities for Corvus Pharmaceuticals and OptiNose

-0.36

Correlation Coefficient

Corvus Pharmaceuticals  OptiNose

Very good diversification

The 3 months correlation between Corvus and OptiNose is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Corvus Pharmaceuticals and OptiNose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiNose and Corvus Pharmaceuticals 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 Corvus Pharmaceuticals are associated (or correlated) with OptiNose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiNose has no effect on the direction of Corvus Pharmaceuticals i.e., Corvus Pharmaceuticals and OptiNose go up and down completely randomly.

Pair Corralation between Corvus Pharmaceuticals and OptiNose

Given the investment horizon of 90 days Corvus Pharmaceuticals is expected to under-perform the OptiNose. But the stock apears to be less risky and, when comparing its historical volatility, Corvus Pharmaceuticals is 1.93 times less risky than OptiNose. The stock trades about -0.15 of its potential returns per unit of risk. The OptiNose is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  620.00  in OptiNose on December 29, 2024 and sell it today you would earn a total of  295.00  from holding OptiNose or generate 47.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Corvus Pharmaceuticals  vs.  OptiNose

Corvus Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corvus Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

OptiNose

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OptiNose are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, OptiNose displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corvus Pharmaceuticals and OptiNose

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

The idea behind Corvus Pharmaceuticals and OptiNose 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.