Correlation Between Oxford Nanopore and AgeX Therapeutics

Can any of the company-specific risk be diversified away by investing in both Oxford Nanopore and AgeX 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 Oxford Nanopore and AgeX Therapeutics 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 AgeX Therapeutics, you can compare the effects of market volatilities on Oxford Nanopore and AgeX 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 Oxford Nanopore with a short position of AgeX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Nanopore and AgeX Therapeutics.

Diversification Opportunities for Oxford Nanopore and AgeX Therapeutics

-0.59

Correlation Coefficient

Oxford Nanopore  AgeX Therapeutics

Excellent diversification

The 3 months correlation between Oxford and AgeX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and AgeX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgeX Therapeutics 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 AgeX Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgeX Therapeutics has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and AgeX Therapeutics go up and down completely randomly.

Pair Corralation between Oxford Nanopore and AgeX Therapeutics

If you would invest  162.00  in Oxford Nanopore Technologies on September 3, 2024 and sell it today you would earn a total of  46.00  from holding Oxford Nanopore Technologies or generate 28.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Oxford Nanopore Technologies  vs.  AgeX Therapeutics

Oxford Nanopore Tech

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oxford Nanopore Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Oxford Nanopore reported solid returns over the last few months and may actually be approaching a breakup point.

AgeX Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AgeX Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AgeX Therapeutics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Oxford Nanopore and AgeX Therapeutics

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

The idea behind Oxford Nanopore Technologies and AgeX 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.