Correlation Between Tourmaline Bio and Champions Oncology

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

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

Diversification Opportunities for Tourmaline Bio and Champions Oncology

-0.11

Correlation Coefficient

Tourmaline Bio  Champions Oncology

Good diversification

The 3 months correlation between Tourmaline and Champions is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tourmaline Bio and Champions Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champions Oncology and Tourmaline Bio 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 Tourmaline Bio are associated (or correlated) with Champions Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champions Oncology has no effect on the direction of Tourmaline Bio i.e., Tourmaline Bio and Champions Oncology go up and down completely randomly.

Pair Corralation between Tourmaline Bio and Champions Oncology

Given the investment horizon of 90 days Tourmaline Bio is expected to generate 1.64 times more return on investment than Champions Oncology. However, Tourmaline Bio is 1.64 times more volatile than Champions Oncology. It trades about 0.18 of its potential returns per unit of risk. Champions Oncology is currently generating about 0.05 per unit of risk. If you would invest  2,261  in Tourmaline Bio on July 27, 2025 and sell it today you would earn a total of  2,537  from holding Tourmaline Bio or generate 112.21% return on investment over 90 days.

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

Tourmaline Bio  vs.  Champions Oncology

Tourmaline Bio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tourmaline Bio are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite weak primary indicators, Tourmaline Bio disclosed solid returns over the last few months and may actually be approaching a breakup point.

Champions Oncology

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Champions Oncology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, Champions Oncology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tourmaline Bio and Champions Oncology

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

The idea behind Tourmaline Bio and Champions 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.