Correlation Between OncoVista Innovative and Ascletis Pharma

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

By analyzing existing cross correlation between OncoVista Innovative Therapies and Ascletis Pharma, you can compare the effects of market volatilities on OncoVista Innovative and Ascletis Pharma 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 OncoVista Innovative with a short position of Ascletis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OncoVista Innovative and Ascletis Pharma.

Diversification Opportunities for OncoVista Innovative and Ascletis Pharma

-0.73

Correlation Coefficient

OncoVista Innovative  Ascletis Pharma

Pay attention - limited upside

The 3 months correlation between OncoVista and Ascletis is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding OncoVista Innovative Therapies and Ascletis Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascletis Pharma and OncoVista Innovative 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 OncoVista Innovative Therapies are associated (or correlated) with Ascletis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascletis Pharma has no effect on the direction of OncoVista Innovative i.e., OncoVista Innovative and Ascletis Pharma go up and down completely randomly.

Pair Corralation between OncoVista Innovative and Ascletis Pharma

Given the investment horizon of 90 days OncoVista Innovative Therapies is expected to under-perform the Ascletis Pharma. But the pink sheet apears to be less risky and, when comparing its historical volatility, OncoVista Innovative Therapies is 3.47 times less risky than Ascletis Pharma. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Ascletis Pharma is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Ascletis Pharma on December 30, 2024 and sell it today you would earn a total of  96.00  from holding Ascletis Pharma or generate 400.0% return on investment over 90 days.

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

OncoVista Innovative Therapies  vs.  Ascletis Pharma

OncoVista Innovative

Risk-Adjusted Performance

Very Weak

Over the last 90 days OncoVista Innovative Therapies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Ascletis Pharma

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ascletis Pharma are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Ascletis Pharma reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OncoVista Innovative and Ascletis Pharma

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

The idea behind OncoVista Innovative Therapies and Ascletis Pharma 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.