Correlation Between Oxford Nanopore and ImmuCell

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

Diversification Opportunities for Oxford Nanopore and ImmuCell

0.49

Correlation Coefficient

Oxford Nanopore  ImmuCell

Very weak diversification

The 3 months correlation between Oxford and ImmuCell is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell 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 ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and ImmuCell go up and down completely randomly.

Pair Corralation between Oxford Nanopore and ImmuCell

Assuming the 90 days horizon Oxford Nanopore Technologies is expected to under-perform the ImmuCell. In addition to that, Oxford Nanopore is 1.58 times more volatile than ImmuCell. It trades about -0.02 of its total potential returns per unit of risk. ImmuCell is currently generating about 0.04 per unit of volatility. If you would invest  482.00  in ImmuCell on December 30, 2024 and sell it today you would earn a total of  19.00  from holding ImmuCell or generate 3.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Oxford Nanopore Technologies  vs.  ImmuCell

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.

ImmuCell

Risk-Adjusted Performance

Weak

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

Pair Trading with Oxford Nanopore and ImmuCell

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

The idea behind Oxford Nanopore Technologies and ImmuCell 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.

Check out your portfolio center.

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 Transaction History module to view history of all your transactions and understand their impact on performance.