Correlation Between Scisparc and Predictive Oncology

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

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

Diversification Opportunities for Scisparc and Predictive Oncology

-0.06

Correlation Coefficient

Scisparc  Predictive Oncology

Good diversification

The 3 months correlation between Scisparc and Predictive is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Scisparc and Predictive Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictive Oncology and Scisparc 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 Scisparc are associated (or correlated) with Predictive Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictive Oncology has no effect on the direction of Scisparc i.e., Scisparc and Predictive Oncology go up and down completely randomly.

Pair Corralation between Scisparc and Predictive Oncology

Given the investment horizon of 90 days Scisparc is expected to under-perform the Predictive Oncology. In addition to that, Scisparc is 1.18 times more volatile than Predictive Oncology. It trades about -0.1 of its total potential returns per unit of risk. Predictive Oncology is currently generating about 0.03 per unit of volatility. If you would invest  91.00  in Predictive Oncology on May 26, 2025 and sell it today you would earn a total of  2.00  from holding Predictive Oncology or generate 2.2% return on investment over 90 days.

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

Scisparc  vs.  Predictive Oncology

Scisparc

Risk-Adjusted Performance

Weakest

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Predictive Oncology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Predictive Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Predictive Oncology is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Scisparc and Predictive Oncology

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

The idea behind Scisparc and Predictive Oncology 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.