Correlation Between Onxeo SA and Konica Minolta
Can any of the company-specific risk be diversified away by investing in both Onxeo SA and Konica Minolta 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 Konica Minolta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onxeo SA and Konica Minolta, you can compare the effects of market volatilities on Onxeo SA and Konica Minolta 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 Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onxeo SA and Konica Minolta.
Diversification Opportunities for Onxeo SA and Konica Minolta
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onxeo and Konica is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Onxeo SA and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta 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 Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of Onxeo SA i.e., Onxeo SA and Konica Minolta go up and down completely randomly.
Pair Corralation between Onxeo SA and Konica Minolta
Assuming the 90 days horizon Onxeo SA is expected to generate 7.82 times more return on investment than Konica Minolta. However, Onxeo SA is 7.82 times more volatile than Konica Minolta. It trades about 0.08 of its potential returns per unit of risk. Konica Minolta is currently generating about -0.28 per unit of risk. If you would invest 7.53 in Onxeo SA on October 21, 2024 and sell it today you would earn a total of 0.48 from holding Onxeo SA or generate 6.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onxeo SA vs. Konica Minolta
Performance |
| Timeline |
| Onxeo SA |
| Konica Minolta |
Onxeo SA and Konica Minolta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onxeo SA and Konica Minolta
The main advantage of trading using opposite Onxeo SA and Konica Minolta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onxeo SA position performs unexpectedly, Konica Minolta 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 Konica Minolta will offset losses from the drop in Konica Minolta's long position.| Onxeo SA vs. Carnegie Clean Energy | Onxeo SA vs. UNIVERSAL MUSIC GROUP | Onxeo SA vs. FIH MOBILE | Onxeo SA vs. Ribbon Communications |
| Konica Minolta vs. FUJIFILM Holdings | Konica Minolta vs. Avery Dennison Corp | Konica Minolta vs. KOKUYO LTD | Konica Minolta vs. Takkt AG |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |