Correlation Between OncoCyte Corp and Volitionrx

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

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

Diversification Opportunities for OncoCyte Corp and Volitionrx

0.25

Correlation Coefficient

OncoCyte Corp  Volitionrx

Modest diversification

The 3 months correlation between OncoCyte and Volitionrx is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding OncoCyte Corp and Volitionrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volitionrx 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 Volitionrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volitionrx has no effect on the direction of OncoCyte Corp i.e., OncoCyte Corp and Volitionrx go up and down completely randomly.

Pair Corralation between OncoCyte Corp and Volitionrx

Considering the 90-day investment horizon OncoCyte Corp is expected to generate 0.74 times more return on investment than Volitionrx. However, OncoCyte Corp is 1.35 times less risky than Volitionrx. It trades about 0.04 of its potential returns per unit of risk. Volitionrx is currently generating about -0.03 per unit of risk. If you would invest  244.00  in OncoCyte Corp on November 29, 2024 and sell it today you would earn a total of  14.00  from holding OncoCyte Corp or generate 5.74% return on investment over 90 days.

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

OncoCyte Corp  vs.  Volitionrx

OncoCyte Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OncoCyte Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, OncoCyte Corp may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Volitionrx

Risk-Adjusted Performance

Very Weak

Over the last 90 days Volitionrx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with OncoCyte Corp and Volitionrx

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

The idea behind OncoCyte Corp and Volitionrx 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.