Correlation Between Oxford Nanopore and Accustem Sciences

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

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

Diversification Opportunities for Oxford Nanopore and Accustem Sciences

0.26

Correlation Coefficient

Oxford Nanopore  Accustem Sciences

Modest diversification

The 3 months correlation between Oxford and Accustem is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and Accustem Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accustem Sciences and Oxford Nanopore 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 Oxford Nanopore Technologies are associated (or correlated) with Accustem Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accustem Sciences has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and Accustem Sciences go up and down completely randomly.

Pair Corralation between Oxford Nanopore and Accustem Sciences

Assuming the 90 days horizon Oxford Nanopore Technologies is expected to under-perform the Accustem Sciences. But the pink sheet apears to be less risky and, when comparing its historical volatility, Oxford Nanopore Technologies is 3.44 times less risky than Accustem Sciences. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Accustem Sciences is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  22.00  in Accustem Sciences on December 26, 2024 and sell it today you would earn a total of  24.00  from holding Accustem Sciences or generate 109.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Oxford Nanopore Technologies  vs.  Accustem Sciences

Oxford Nanopore Tech

Risk-Adjusted Performance

Very Weak

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

Accustem Sciences

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accustem Sciences are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Accustem Sciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oxford Nanopore and Accustem Sciences

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

The idea behind Oxford Nanopore Technologies and Accustem Sciences 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..