Correlation Between Auction Technology and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both Auction Technology and Ocean Harvest 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 Auction Technology and Ocean Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and Ocean Harvest Technology, you can compare the effects of market volatilities on Auction Technology and Ocean Harvest 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 Auction Technology with a short position of Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and Ocean Harvest.
Diversification Opportunities for Auction Technology and Ocean Harvest
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Auction and Ocean is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology Group and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology and Auction Technology 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 Auction Technology Group are associated (or correlated) with Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of Auction Technology i.e., Auction Technology and Ocean Harvest go up and down completely randomly.
Pair Corralation between Auction Technology and Ocean Harvest
Assuming the 90 days trading horizon Auction Technology Group is expected to generate 0.83 times more return on investment than Ocean Harvest. However, Auction Technology Group is 1.21 times less risky than Ocean Harvest. It trades about -0.02 of its potential returns per unit of risk. Ocean Harvest Technology is currently generating about -0.03 per unit of risk. If you would invest 77,700 in Auction Technology Group on August 30, 2024 and sell it today you would lose (27,000) from holding Auction Technology Group or give up 34.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.27% |
| Values | Daily Returns |
Auction Technology Group vs. Ocean Harvest Technology
Performance |
| Timeline |
| Auction Technology |
| Ocean Harvest Technology |
Auction Technology and Ocean Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and Ocean Harvest
The main advantage of trading using opposite Auction Technology and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest's long position.| Auction Technology vs. Samsung Electronics Co | Auction Technology vs. Samsung Electronics Co | Auction Technology vs. Hyundai Motor | Auction Technology vs. Toyota Motor Corp |
| Ocean Harvest vs. Samsung Electronics Co | Ocean Harvest vs. Samsung Electronics Co | Ocean Harvest vs. Hyundai Motor | Ocean Harvest vs. Toyota Motor Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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