Correlation Between Inovio Pharmaceuticals and Ocugen

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

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

Diversification Opportunities for Inovio Pharmaceuticals and Ocugen

0.0

Correlation Coefficient

Inovio Pharmaceuticals  Ocugen

Pay attention - limited upside

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

Pair Corralation between Inovio Pharmaceuticals and Ocugen

Considering the 90-day investment horizon Inovio Pharmaceuticals is expected to generate 1.59 times less return on investment than Ocugen. But when comparing it to its historical volatility, Inovio Pharmaceuticals is 1.03 times less risky than Ocugen. It trades about 0.01 of its potential returns per unit of risk. Ocugen Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  81.00  in Ocugen Inc on December 28, 2024 and sell it today you would lose (1.00) from holding Ocugen Inc or give up 1.23% of portfolio value over 90 days.

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

Inovio Pharmaceuticals  vs.  Ocugen Inc

Inovio Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Inovio Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Inovio Pharmaceuticals is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Ocugen Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ocugen Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Ocugen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Inovio Pharmaceuticals and Ocugen

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

The idea behind Inovio Pharmaceuticals and Ocugen Inc 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.

Check out your portfolio center.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.