Correlation Between Olema Pharmaceuticals and Alfi

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Olema Pharmaceuticals and Alfi 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 Olema Pharmaceuticals and Alfi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Olema Pharmaceuticals and Alfi Inc, you can compare the effects of market volatilities on Olema Pharmaceuticals and Alfi 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 Olema Pharmaceuticals with a short position of Alfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olema Pharmaceuticals and Alfi.

Diversification Opportunities for Olema Pharmaceuticals and Alfi

0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Olema and Alfi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Olema Pharmaceuticals and Alfi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfi Inc and Olema Pharmaceuticals 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 Olema Pharmaceuticals are associated (or correlated) with Alfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfi Inc has no effect on the direction of Olema Pharmaceuticals i.e., Olema Pharmaceuticals and Alfi go up and down completely randomly.

Pair Corralation between Olema Pharmaceuticals and Alfi

Given the investment horizon of 90 days Olema Pharmaceuticals is expected to under-perform the Alfi. In addition to that, Olema Pharmaceuticals is 1.2 times more volatile than Alfi Inc. It trades about -0.03 of its total potential returns per unit of risk. Alfi Inc is currently generating about -0.03 per unit of volatility. If you would invest  165.00  in Alfi Inc on June 26, 2022 and sell it today you would lose (68.00)  from holding Alfi Inc or give up 41.21% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Olema Pharmaceuticals  vs.  Alfi Inc

 Performance (%) 
       Timeline  
Olema Pharmaceuticals 
Olema Performance
0 of 100
Over the last 90 days Olema Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Olema Price Channel

Alfi Inc 
Alfi Performance
0 of 100
Over the last 90 days Alfi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in October 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Alfi Price Channel

Olema Pharmaceuticals and Alfi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Olema Pharmaceuticals and Alfi

The main advantage of trading using opposite Olema Pharmaceuticals and Alfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olema Pharmaceuticals position performs unexpectedly, Alfi 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 Alfi will offset losses from the drop in Alfi's long position.
Olema Pharmaceuticals vs. Alignment Healthcare
Olema Pharmaceuticals vs. Parkway Life REIT
Olema Pharmaceuticals vs. CVS Corp
Olema Pharmaceuticals vs. Molina Healthcare
The idea behind Olema Pharmaceuticals and Alfi Inc 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.
Alfi vs. Industrias Bachoco SA
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go