Correlation Between Ocean Biomedical and Immix Biopharma

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

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

Diversification Opportunities for Ocean Biomedical and Immix Biopharma

-0.71

Correlation Coefficient

Ocean Biomedical  Immix Biopharma

Pay attention - limited upside

The 3 months correlation between Ocean and Immix is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Biomedical and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and Ocean Biomedical 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 Ocean Biomedical are associated (or correlated) with Immix Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immix Biopharma has no effect on the direction of Ocean Biomedical i.e., Ocean Biomedical and Immix Biopharma go up and down completely randomly.

Pair Corralation between Ocean Biomedical and Immix Biopharma

Given the investment horizon of 90 days Ocean Biomedical is expected to under-perform the Immix Biopharma. In addition to that, Ocean Biomedical is 2.2 times more volatile than Immix Biopharma. It trades about -0.14 of its total potential returns per unit of risk. Immix Biopharma is currently generating about -0.09 per unit of volatility. If you would invest  218.00  in Immix Biopharma on October 23, 2024 and sell it today you would lose (17.00) from holding Immix Biopharma or give up 7.8% of portfolio value over 90 days.

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

Ocean Biomedical  vs.  Immix Biopharma

Ocean Biomedical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ocean Biomedical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Immix Biopharma

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting primary indicators, Immix Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ocean Biomedical and Immix Biopharma

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

The idea behind Ocean Biomedical and Immix Biopharma 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.