Correlation Between Oncimmune Holdings and Zanaga Iron

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

By analyzing existing cross correlation between Oncimmune Holdings plc and Zanaga Iron Ore, you can compare the effects of market volatilities on Oncimmune Holdings and Zanaga Iron 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 Oncimmune Holdings with a short position of Zanaga Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncimmune Holdings and Zanaga Iron.

Diversification Opportunities for Oncimmune Holdings and Zanaga Iron

0.74

Correlation Coefficient

Oncimmune Holdings  Zanaga Iron

Poor diversification

The 3 months correlation between Oncimmune and Zanaga is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oncimmune Holdings plc and Zanaga Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zanaga Iron Ore and Oncimmune Holdings 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 Oncimmune Holdings plc are associated (or correlated) with Zanaga Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zanaga Iron Ore has no effect on the direction of Oncimmune Holdings i.e., Oncimmune Holdings and Zanaga Iron go up and down completely randomly.

Pair Corralation between Oncimmune Holdings and Zanaga Iron

Assuming the 90 days trading horizon Oncimmune Holdings plc is expected to under-perform the Zanaga Iron. But the stock apears to be less risky and, when comparing its historical volatility, Oncimmune Holdings plc is 1.42 times less risky than Zanaga Iron. The stock trades about -0.11 of its potential returns per unit of risk. The Zanaga Iron Ore is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  576.00  in Zanaga Iron Ore on September 12, 2024 and sell it today you would lose (80.00) from holding Zanaga Iron Ore or give up 13.89% of portfolio value over 90 days.

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

Oncimmune Holdings plc  vs.  Zanaga Iron Ore

Oncimmune Holdings plc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Zanaga Iron Ore

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zanaga Iron Ore has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Oncimmune Holdings and Zanaga Iron

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

The idea behind Oncimmune Holdings plc and Zanaga Iron Ore 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.