Correlation Between Ocugen and Dreyfus New

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

By analyzing existing cross correlation between Ocugen Inc and Dreyfus New Jersey, you can compare the effects of market volatilities on Ocugen and Dreyfus New 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 Ocugen with a short position of Dreyfus New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocugen and Dreyfus New.

Diversification Opportunities for Ocugen and Dreyfus New

0.07

Correlation Coefficient

Ocugen  Dreyfus New

Significant diversification

The 3 months correlation between Ocugen and Dreyfus is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ocugen Inc and Dreyfus New Jersey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus New Jersey and Ocugen 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 Ocugen Inc are associated (or correlated) with Dreyfus New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus New Jersey has no effect on the direction of Ocugen i.e., Ocugen and Dreyfus New go up and down completely randomly.

Pair Corralation between Ocugen and Dreyfus New

Given the investment horizon of 90 days Ocugen Inc is expected to generate 47.98 times more return on investment than Dreyfus New. However, Ocugen is 47.98 times more volatile than Dreyfus New Jersey. It trades about 0.26 of its potential returns per unit of risk. Dreyfus New Jersey is currently generating about -0.22 per unit of risk. If you would invest  103.00  in Ocugen Inc on January 17, 2024 and sell it today you would earn a total of  56.00  from holding Ocugen Inc or generate 54.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Ocugen Inc  vs.  Dreyfus New Jersey

Ocugen Inc

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ocugen Inc are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Ocugen displayed solid returns over the last few months and may actually be approaching a breakup point.

Dreyfus New Jersey

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dreyfus New Jersey has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Dreyfus New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ocugen and Dreyfus New

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

The idea behind Ocugen Inc and Dreyfus New Jersey 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.