Correlation Between Cboe UK and Old Mutual
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By analyzing existing cross correlation between Cboe UK Consumer and Old Mutual, you can compare the effects of market volatilities on Cboe UK and Old Mutual 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 Cboe UK with a short position of Old Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Old Mutual.
Diversification Opportunities for Cboe UK and Old Mutual
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cboe and Old is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Old Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Mutual and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Old Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Mutual has no effect on the direction of Cboe UK i.e., Cboe UK and Old Mutual go up and down completely randomly.
Pair Corralation between Cboe UK and Old Mutual
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.63 times more return on investment than Old Mutual. However, Cboe UK Consumer is 1.58 times less risky than Old Mutual. It trades about 0.54 of its potential returns per unit of risk. Old Mutual is currently generating about 0.01 per unit of risk. If you would invest 2,968,070 in Cboe UK Consumer on September 4, 2024 and sell it today you would earn a total of 351,150 from holding Cboe UK Consumer or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Old Mutual
Performance |
| Timeline |
Cboe UK and Old Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Old Mutual
Pair trading matchups for Old Mutual
Pair Trading with Cboe UK and Old Mutual
The main advantage of trading using opposite Cboe UK and Old Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Old Mutual 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 Old Mutual will offset losses from the drop in Old Mutual's long position.| Cboe UK vs. Bisichi Mining PLC | Cboe UK vs. United Airlines Holdings | Cboe UK vs. Blackrock World Mining | Cboe UK vs. Greenroc Mining PLC |
| Old Mutual vs. Sunny Optical Technology | Old Mutual vs. Spire Healthcare Group | Old Mutual vs. PureTech Health plc | Old Mutual vs. Target Healthcare REIT |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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