Correlation Between Oxford Nanopore and Aridis Pharmaceuticals

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

Diversification Opportunities for Oxford Nanopore and Aridis Pharmaceuticals

-0.36

Correlation Coefficient

Oxford Nanopore  Aridis Pharmaceuticals

Very good diversification

The 3 months correlation between Oxford and Aridis is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Nanopore Technologies and Aridis Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aridis Pharmaceuticals 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 Aridis Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aridis Pharmaceuticals has no effect on the direction of Oxford Nanopore i.e., Oxford Nanopore and Aridis Pharmaceuticals go up and down completely randomly.

Pair Corralation between Oxford Nanopore and Aridis Pharmaceuticals

If you would invest  198.00  in Oxford Nanopore Technologies on September 14, 2024 and sell it today you would earn a total of  6.00  from holding Oxford Nanopore Technologies or generate 3.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Oxford Nanopore Technologies  vs.  Aridis Pharmaceuticals

Oxford Nanopore Tech

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oxford Nanopore Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Oxford Nanopore reported solid returns over the last few months and may actually be approaching a breakup point.

Aridis Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aridis Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Aridis Pharmaceuticals is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Oxford Nanopore and Aridis Pharmaceuticals

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

The idea behind Oxford Nanopore Technologies and Aridis Pharmaceuticals 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 Transaction History module to view history of all your transactions and understand their impact on performance.