Correlation Between OncoCyte Corp and ISpecimen

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

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

Diversification Opportunities for OncoCyte Corp and ISpecimen

-0.77

Correlation Coefficient

OncoCyte Corp  ISpecimen

Pay attention - limited upside

The 3 months correlation between OncoCyte and ISpecimen is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding OncoCyte Corp and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of OncoCyte Corp i.e., OncoCyte Corp and ISpecimen go up and down completely randomly.

Pair Corralation between OncoCyte Corp and ISpecimen

Considering the 90-day investment horizon OncoCyte Corp is expected to generate 0.76 times more return on investment than ISpecimen. However, OncoCyte Corp is 1.31 times less risky than ISpecimen. It trades about 0.11 of its potential returns per unit of risk. iSpecimen is currently generating about -0.19 per unit of risk. If you would invest  245.00  in OncoCyte Corp on December 30, 2024 and sell it today you would earn a total of  76.00  from holding OncoCyte Corp or generate 31.02% return on investment over 90 days.

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

OncoCyte Corp  vs.  iSpecimen

OncoCyte Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OncoCyte Corp are ranked lower than 8 (%) 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.

iSpecimen

Risk-Adjusted Performance

Very Weak

Over the last 90 days iSpecimen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with OncoCyte Corp and ISpecimen

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

The idea behind OncoCyte Corp and iSpecimen 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.