Correlation Between Oncorus and Foghorn Therapeutics

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

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

Diversification Opportunities for Oncorus and Foghorn Therapeutics

0.06

Correlation Coefficient

Oncorus  Foghorn Therapeutics

Significant diversification

The 3 months correlation between Oncorus and Foghorn is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oncorus and Foghorn Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foghorn Therapeutics 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 Foghorn Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foghorn Therapeutics has no effect on the direction of Oncorus i.e., Oncorus and Foghorn Therapeutics go up and down completely randomly.

Pair Corralation between Oncorus and Foghorn Therapeutics

If you would invest  797.00  in Foghorn Therapeutics on September 4, 2024 and sell it today you would earn a total of  6.00  from holding Foghorn Therapeutics or generate 0.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Oncorus  vs.  Foghorn Therapeutics

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.

Foghorn Therapeutics

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Foghorn Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Foghorn Therapeutics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Oncorus and Foghorn Therapeutics

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

The idea behind Oncorus and Foghorn Therapeutics 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.