Correlation Between Ocugen and ONTX Old

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

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

Diversification Opportunities for Ocugen and ONTX Old

0.0

Correlation Coefficient

Ocugen  ONTX Old

Pay attention - limited upside

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

Pair Corralation between Ocugen and ONTX Old

If you would invest  81.00  in Ocugen Inc on December 29, 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	0.0%
Values	Daily Returns

Ocugen Inc  vs.  ONTX Old

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.

ONTX Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Ocugen and ONTX Old

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

The idea behind Ocugen Inc and ONTX Old 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.