Correlation Between Oncorus and Adagene

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

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

Diversification Opportunities for Oncorus and Adagene

0.54

Correlation Coefficient

Oncorus  Adagene

Very weak diversification

The 3 months correlation between Oncorus and Adagene is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Oncorus and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and Oncorus 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 Oncorus are associated (or correlated) with Adagene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adagene has no effect on the direction of Oncorus i.e., Oncorus and Adagene go up and down completely randomly.

Pair Corralation between Oncorus and Adagene

If you would invest  4.35  in Oncorus on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Oncorus or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Oncorus  vs.  Adagene

Oncorus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oncorus has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Oncorus is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Adagene

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adagene has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Adagene is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Oncorus and Adagene

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

The idea behind Oncorus and Adagene 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.