Correlation Between Oxford Cannabinoid and Accustem Sciences

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

By analyzing existing cross correlation between Oxford Cannabinoid Technologies and Accustem Sciences, you can compare the effects of market volatilities on Oxford Cannabinoid and Accustem Sciences 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 Oxford Cannabinoid with a short position of Accustem Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Cannabinoid and Accustem Sciences.

Diversification Opportunities for Oxford Cannabinoid and Accustem Sciences

0.0

Correlation Coefficient

Oxford Cannabinoid  Accustem Sciences

Pay attention - limited upside

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

Pair Corralation between Oxford Cannabinoid and Accustem Sciences

Assuming the 90 days horizon Oxford Cannabinoid Technologies is expected to generate 4.08 times more return on investment than Accustem Sciences. However, Oxford Cannabinoid is 4.08 times more volatile than Accustem Sciences. It trades about 0.07 of its potential returns per unit of risk. Accustem Sciences is currently generating about 0.06 per unit of risk. If you would invest  0.51  in Oxford Cannabinoid Technologies on September 24, 2024 and sell it today you would lose (0.23) from holding Oxford Cannabinoid Technologies or give up 45.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.4%
Values	Daily Returns

Oxford Cannabinoid Technologie  vs.  Accustem Sciences

Oxford Cannabinoid

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Oxford Cannabinoid Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Oxford Cannabinoid is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Accustem Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accustem Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Oxford Cannabinoid and Accustem Sciences

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

The idea behind Oxford Cannabinoid Technologies and Accustem Sciences 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.