Correlation Between OncoCyte Corp and Evolus

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

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

Diversification Opportunities for OncoCyte Corp and Evolus

0.18

Correlation Coefficient

OncoCyte Corp  Evolus

Average diversification

The 3 months correlation between OncoCyte and Evolus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding OncoCyte Corp and Evolus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolus Inc and OncoCyte Corp 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 OncoCyte Corp are associated (or correlated) with Evolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolus Inc has no effect on the direction of OncoCyte Corp i.e., OncoCyte Corp and Evolus go up and down completely randomly.

Pair Corralation between OncoCyte Corp and Evolus

Considering the 90-day investment horizon OncoCyte Corp is expected to generate 1.02 times more return on investment than Evolus. However, OncoCyte Corp is 1.02 times more volatile than Evolus Inc. It trades about 0.12 of its potential returns per unit of risk. Evolus Inc is currently generating about 0.06 per unit of risk. If you would invest  245.00  in OncoCyte Corp on December 29, 2024 and sell it today you would earn a total of  77.00  from holding OncoCyte Corp or generate 31.43% return on investment over 90 days.

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

OncoCyte Corp  vs.  Evolus Inc

OncoCyte Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OncoCyte Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, OncoCyte Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Evolus Inc

Risk-Adjusted Performance

Insignificant

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

Pair Trading with OncoCyte Corp and Evolus

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

The idea behind OncoCyte Corp and Evolus Inc 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.