Correlation Between NewGenIvf Group and Oncology Institute

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

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

Diversification Opportunities for NewGenIvf Group and Oncology Institute

0.09

Correlation Coefficient

NewGenIvf Group  Oncology Institute

Significant diversification

The 3 months correlation between NewGenIvf and Oncology is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NewGenIvf Group Limited and The Oncology Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Oncology Institute and NewGenIvf Group 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 NewGenIvf Group Limited are associated (or correlated) with Oncology Institute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Oncology Institute has no effect on the direction of NewGenIvf Group i.e., NewGenIvf Group and Oncology Institute go up and down completely randomly.

Pair Corralation between NewGenIvf Group and Oncology Institute

Assuming the 90 days horizon NewGenIvf Group is expected to generate 3.02 times less return on investment than Oncology Institute. But when comparing it to its historical volatility, NewGenIvf Group Limited is 3.57 times less risky than Oncology Institute. It trades about 0.12 of its potential returns per unit of risk. The Oncology Institute is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  10.00  in The Oncology Institute on October 21, 2024 and sell it today you would lose (8.00) from holding The Oncology Institute or give up 80.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	80.64%
Values	Daily Returns

NewGenIvf Group Limited  vs.  The Oncology Institute

NewGenIvf Group

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, NewGenIvf Group showed solid returns over the last few months and may actually be approaching a breakup point.

The Oncology Institute

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Oncology Institute are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward indicators, Oncology Institute showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NewGenIvf Group and Oncology Institute

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

The idea behind NewGenIvf Group Limited and The Oncology Institute 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.