Correlation Between OncoCyte Corp and Sera Prognostics

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

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

Diversification Opportunities for OncoCyte Corp and Sera Prognostics

-0.62

Correlation Coefficient

OncoCyte Corp  Sera Prognostics

Excellent diversification

The 3 months correlation between OncoCyte and Sera is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding OncoCyte Corp and Sera Prognostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sera Prognostics 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 Sera Prognostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sera Prognostics has no effect on the direction of OncoCyte Corp i.e., OncoCyte Corp and Sera Prognostics go up and down completely randomly.

Pair Corralation between OncoCyte Corp and Sera Prognostics

Considering the 90-day investment horizon OncoCyte Corp is expected to generate 0.98 times more return on investment than Sera Prognostics. However, OncoCyte Corp is 1.02 times less risky than Sera Prognostics. It trades about 0.11 of its potential returns per unit of risk. Sera Prognostics is currently generating about -0.26 per unit of risk. If you would invest  245.00  in OncoCyte Corp on December 28, 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.  Sera Prognostics

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 unfluctuating fundamental indicators, OncoCyte Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Sera Prognostics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sera Prognostics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with OncoCyte Corp and Sera Prognostics

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

The idea behind OncoCyte Corp and Sera Prognostics 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.