Correlation Between N Citron and OLIPASS
Can any of the company-specific risk be diversified away by investing in both N Citron and OLIPASS 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 N Citron and OLIPASS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N Citron and OLIPASS, you can compare the effects of market volatilities on N Citron and OLIPASS 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 N Citron with a short position of OLIPASS. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Citron and OLIPASS.
Diversification Opportunities for N Citron and OLIPASS
Poor diversification
The 3 months correlation between 101400 and OLIPASS is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding N Citron and OLIPASS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLIPASS and N Citron 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 N Citron are associated (or correlated) with OLIPASS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLIPASS has no effect on the direction of N Citron i.e., N Citron and OLIPASS go up and down completely randomly.
Pair Corralation between N Citron and OLIPASS
Assuming the 90 days trading horizon N Citron is expected to under-perform the OLIPASS. But the stock apears to be less risky and, when comparing its historical volatility, N Citron is 3.8 times less risky than OLIPASS. The stock trades about -0.13 of its potential returns per unit of risk. The OLIPASS is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 471,000 in OLIPASS on September 1, 2024 and sell it today you would earn a total of 145,000 from holding OLIPASS or generate 30.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
N Citron vs. OLIPASS
Performance |
| Timeline |
| N Citron |
| OLIPASS |
N Citron and OLIPASS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Citron and OLIPASS
The main advantage of trading using opposite N Citron and OLIPASS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Citron position performs unexpectedly, OLIPASS 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 OLIPASS will offset losses from the drop in OLIPASS's long position.| N Citron vs. Tuksu Engineering ConstructionLtd | N Citron vs. Dongwoo Farm To | N Citron vs. Korea Shipbuilding Offshore | N Citron vs. Seohee Construction Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |