Correlation Between Champions Oncology and ELYM Old

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

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

Diversification Opportunities for Champions Oncology and ELYM Old

-0.75

Correlation Coefficient

Champions Oncology  ELYM Old

Pay attention - limited upside

The 3 months correlation between Champions and ELYM is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Champions Oncology and ELYM Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELYM Old and Champions Oncology 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 Champions Oncology are associated (or correlated) with ELYM Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELYM Old has no effect on the direction of Champions Oncology i.e., Champions Oncology and ELYM Old go up and down completely randomly.

Pair Corralation between Champions Oncology and ELYM Old

If you would invest  811.00  in Champions Oncology on October 24, 2024 and sell it today you would earn a total of  167.00  from holding Champions Oncology or generate 20.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	5.56%
Values	Daily Returns

Champions Oncology  vs.  ELYM Old

Champions Oncology

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Champions Oncology are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, Champions Oncology reported solid returns over the last few months and may actually be approaching a breakup point.

ELYM Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ELYM Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Champions Oncology and ELYM Old

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

The idea behind Champions Oncology and ELYM Old 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.