Correlation Between OmniAb and GreenLight Biosciences

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

By analyzing existing cross correlation between OmniAb Inc and GreenLight Biosciences Holdings, you can compare the effects of market volatilities on OmniAb and GreenLight Biosciences 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 GreenLight Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of OmniAb and GreenLight Biosciences.

Diversification Opportunities for OmniAb and GreenLight Biosciences

0.0

Correlation Coefficient

OmniAb  GreenLight Biosciences

Pay attention - limited upside

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

Pair Corralation between OmniAb and GreenLight Biosciences

If you would invest  34.00  in OmniAb Inc on December 30, 2024 and sell it today you would lose (3.00) from holding OmniAb Inc or give up 8.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

OmniAb Inc  vs.  GreenLight Biosciences Holding

OmniAb Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OmniAb Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, OmniAb showed solid returns over the last few months and may actually be approaching a breakup point.

GreenLight Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days GreenLight Biosciences Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, GreenLight Biosciences is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with OmniAb and GreenLight Biosciences

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

The idea behind OmniAb Inc and GreenLight Biosciences Holdings 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.