Correlation Between OncoSec Medical and Dermata Therapeutics

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

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

Diversification Opportunities for OncoSec Medical and Dermata Therapeutics

0.56

Correlation Coefficient

OncoSec Medical  Dermata Therapeutics

Very weak diversification

The 3 months correlation between OncoSec and Dermata is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding OncoSec Medical and Dermata Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dermata Therapeutics and OncoSec Medical 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 OncoSec Medical are associated (or correlated) with Dermata Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dermata Therapeutics has no effect on the direction of OncoSec Medical i.e., OncoSec Medical and Dermata Therapeutics go up and down completely randomly.

Pair Corralation between OncoSec Medical and Dermata Therapeutics

If you would invest  133.00  in Dermata Therapeutics on October 8, 2024 and sell it today you would earn a total of  10.00  from holding Dermata Therapeutics or generate 7.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	5.26%
Values	Daily Returns

OncoSec Medical  vs.  Dermata Therapeutics

OncoSec Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OncoSec Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, OncoSec Medical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Dermata Therapeutics

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dermata Therapeutics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Dermata Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OncoSec Medical and Dermata Therapeutics

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

The idea behind OncoSec Medical and Dermata 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.