Correlation Between OCUP Old and CTi Biopharma

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

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

Diversification Opportunities for OCUP Old and CTi Biopharma

0.0

Correlation Coefficient

OCUP Old  CTi Biopharma

Pay attention - limited upside

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

Pair Corralation between OCUP Old and CTi Biopharma

If you would invest (100.00) in CTi Biopharma Corp on December 27, 2024 and sell it today you would earn a total of  100.00  from holding CTi Biopharma Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

OCUP Old  vs.  CTi Biopharma Corp

OCUP Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days OCUP Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, OCUP Old is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

CTi Biopharma Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CTi Biopharma Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, CTi Biopharma is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with OCUP Old and CTi Biopharma

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

The idea behind OCUP Old and CTi Biopharma Corp 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.