Correlation Between OmniAb and Rain Enhancement
Can any of the company-specific risk be diversified away by investing in both OmniAb and Rain Enhancement 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 OmniAb and Rain Enhancement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OmniAb Inc and Rain Enhancement Technologies, you can compare the effects of market volatilities on OmniAb and Rain Enhancement 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 OmniAb with a short position of Rain Enhancement. Check out your portfolio center. Please also check ongoing floating volatility patterns of OmniAb and Rain Enhancement.
Diversification Opportunities for OmniAb and Rain Enhancement
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OmniAb and Rain is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding OmniAb Inc and Rain Enhancement Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rain Enhancement Tec and OmniAb 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 OmniAb Inc are associated (or correlated) with Rain Enhancement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rain Enhancement Tec has no effect on the direction of OmniAb i.e., OmniAb and Rain Enhancement go up and down completely randomly.
Pair Corralation between OmniAb and Rain Enhancement
Given the investment horizon of 90 days OmniAb Inc is expected to generate 0.26 times more return on investment than Rain Enhancement. However, OmniAb Inc is 3.87 times less risky than Rain Enhancement. It trades about -0.08 of its potential returns per unit of risk. Rain Enhancement Technologies is currently generating about -0.21 per unit of risk. If you would invest 387.00 in OmniAb Inc on December 5, 2024 and sell it today you would lose (52.00) from holding OmniAb Inc or give up 13.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 71.19% |
Values | Daily Returns |
OmniAb Inc vs. Rain Enhancement Technologies
Performance |
Timeline |
OmniAb Inc |
Rain Enhancement Tec |
OmniAb and Rain Enhancement Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OmniAb and Rain Enhancement
The main advantage of trading using opposite OmniAb and Rain Enhancement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OmniAb position performs unexpectedly, Rain Enhancement 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 Rain Enhancement will offset losses from the drop in Rain Enhancement's long position.OmniAb vs. Legend Biotech Corp | OmniAb vs. Verona Pharma PLC | OmniAb vs. Ideaya Biosciences | OmniAb vs. Iteos Therapeutics |
Rain Enhancement vs. Ocean Biomedical | Rain Enhancement vs. Enveric Biosciences | Rain Enhancement vs. Elevation Oncology | Rain Enhancement vs. Hepion Pharmaceuticals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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