Correlation Between Oncologix Tech and Church Crawford

Can any of the company-specific risk be diversified away by investing in both Oncologix Tech and Church Crawford 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 Oncologix Tech and Church Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Oncologix Tech and Church Crawford

0.0

Correlation Coefficient

Oncologix Tech  Church Crawford

Pay attention - limited upside

The 3 months correlation between Oncologix and Church is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oncologix Tech and Church Crawford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Crawford and Oncologix Tech 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 Oncologix Tech are associated (or correlated) with Church Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Crawford has no effect on the direction of Oncologix Tech i.e., Oncologix Tech and Church Crawford go up and down completely randomly.

Pair Corralation between Oncologix Tech and Church Crawford

Given the investment horizon of 90 days Oncologix Tech is expected to generate 2.11 times less return on investment than Church Crawford. But when comparing it to its historical volatility, Oncologix Tech is 1.13 times less risky than Church Crawford. It trades about 0.03 of its potential returns per unit of risk. Church Crawford is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.90  in Church Crawford on September 4, 2024 and sell it today you would lose (0.67) from holding Church Crawford or give up 74.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Oncologix Tech  vs.  Church Crawford

Oncologix Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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

Church Crawford

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with Oncologix Tech and Church Crawford

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

The idea behind Oncologix Tech and Church Crawford 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 Commodity Directory module to find actively traded commodities issued by global exchanges.