Correlation Between ImmuCell and Oxford Nanopore

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

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

Diversification Opportunities for ImmuCell and Oxford Nanopore

0.49

Correlation Coefficient

ImmuCell  Oxford Nanopore

Very weak diversification

The 3 months correlation between ImmuCell and Oxford is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech and ImmuCell 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 ImmuCell are associated (or correlated) with Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of ImmuCell i.e., ImmuCell and Oxford Nanopore go up and down completely randomly.

Pair Corralation between ImmuCell and Oxford Nanopore

Given the investment horizon of 90 days ImmuCell is expected to generate 0.63 times more return on investment than Oxford Nanopore. However, ImmuCell is 1.58 times less risky than Oxford Nanopore. It trades about 0.04 of its potential returns per unit of risk. Oxford Nanopore Technologies is currently generating about -0.02 per unit of risk. If you would invest  482.00  in ImmuCell on December 30, 2024 and sell it today you would earn a total of  19.00  from holding ImmuCell or generate 3.94% return on investment over 90 days.

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

ImmuCell  vs.  Oxford Nanopore Technologies

ImmuCell

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Oxford Nanopore Tech

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ImmuCell and Oxford Nanopore

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

The idea behind ImmuCell and Oxford Nanopore Technologies 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.