Correlation Between Gedeon Richter and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Gedeon Richter and Oxford Technology 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 Gedeon Richter and Oxford Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gedeon Richter PLC and Oxford Technology 2, you can compare the effects of market volatilities on Gedeon Richter and Oxford Technology 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 Gedeon Richter with a short position of Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedeon Richter and Oxford Technology.
Diversification Opportunities for Gedeon Richter and Oxford Technology
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gedeon and Oxford is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gedeon Richter PLC and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology and Gedeon Richter 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 Gedeon Richter PLC are associated (or correlated) with Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Gedeon Richter i.e., Gedeon Richter and Oxford Technology go up and down completely randomly.
Pair Corralation between Gedeon Richter and Oxford Technology
Assuming the 90 days trading horizon Gedeon Richter PLC is expected to generate 12.63 times more return on investment than Oxford Technology. However, Gedeon Richter is 12.63 times more volatile than Oxford Technology 2. It trades about 0.1 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.22 per unit of risk. If you would invest 504,000 in Gedeon Richter PLC on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Gedeon Richter PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gedeon Richter PLC vs. Oxford Technology 2
Performance |
| Timeline |
| Gedeon Richter PLC |
| Oxford Technology |
Gedeon Richter and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedeon Richter and Oxford Technology
The main advantage of trading using opposite Gedeon Richter and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedeon Richter position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.| Gedeon Richter vs. Summit Materials Cl | Gedeon Richter vs. Logitech International SA | Gedeon Richter vs. Spotify Technology SA | Gedeon Richter vs. Sabre Insurance Group |
| Oxford Technology vs. Ondine Biomedical | Oxford Technology vs. Costco Wholesale Corp | Oxford Technology vs. Take Two Interactive Software | Oxford Technology vs. JD Sports Fashion |
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 the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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