Correlation Between Onxeo SA and Assured Guaranty
Can any of the company-specific risk be diversified away by investing in both Onxeo SA and Assured Guaranty 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 Onxeo SA and Assured Guaranty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onxeo SA and Assured Guaranty, you can compare the effects of market volatilities on Onxeo SA and Assured Guaranty 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 Onxeo SA with a short position of Assured Guaranty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onxeo SA and Assured Guaranty.
Diversification Opportunities for Onxeo SA and Assured Guaranty
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onxeo and Assured is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Onxeo SA and Assured Guaranty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assured Guaranty and Onxeo SA 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 Onxeo SA are associated (or correlated) with Assured Guaranty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assured Guaranty has no effect on the direction of Onxeo SA i.e., Onxeo SA and Assured Guaranty go up and down completely randomly.
Pair Corralation between Onxeo SA and Assured Guaranty
Assuming the 90 days horizon Onxeo SA is expected to generate 2.92 times more return on investment than Assured Guaranty. However, Onxeo SA is 2.92 times more volatile than Assured Guaranty. It trades about 0.02 of its potential returns per unit of risk. Assured Guaranty is currently generating about 0.04 per unit of risk. If you would invest 14.00 in Onxeo SA on September 14, 2024 and sell it today you would lose (6.94) from holding Onxeo SA or give up 49.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Onxeo SA vs. Assured Guaranty
Performance |
| Timeline |
| Onxeo SA |
| Assured Guaranty |
Onxeo SA and Assured Guaranty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onxeo SA and Assured Guaranty
The main advantage of trading using opposite Onxeo SA and Assured Guaranty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onxeo SA position performs unexpectedly, Assured Guaranty 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 Assured Guaranty will offset losses from the drop in Assured Guaranty's long position.| Onxeo SA vs. Spirent Communications plc | Onxeo SA vs. Compagnie Plastic Omnium | Onxeo SA vs. Rayonier Advanced Materials | Onxeo SA vs. Mobilezone Holding AG |
| Assured Guaranty vs. First American Financial | Assured Guaranty vs. MGIC Investment | Assured Guaranty vs. Lancashire Holdings Limited | Assured Guaranty vs. Trisura Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |