Correlation Between Celebrus Technologies and Oxford Metrics
Can any of the company-specific risk be diversified away by investing in both Celebrus Technologies and Oxford Metrics 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 Celebrus Technologies and Oxford Metrics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebrus Technologies plc and Oxford Metrics plc, you can compare the effects of market volatilities on Celebrus Technologies and Oxford Metrics 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 Celebrus Technologies with a short position of Oxford Metrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebrus Technologies and Oxford Metrics.
Diversification Opportunities for Celebrus Technologies and Oxford Metrics
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Celebrus and Oxford is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies plc and Oxford Metrics plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Metrics plc and Celebrus Technologies 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 Celebrus Technologies plc are associated (or correlated) with Oxford Metrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Metrics plc has no effect on the direction of Celebrus Technologies i.e., Celebrus Technologies and Oxford Metrics go up and down completely randomly.
Pair Corralation between Celebrus Technologies and Oxford Metrics
Assuming the 90 days trading horizon Celebrus Technologies plc is expected to generate 24.55 times more return on investment than Oxford Metrics. However, Celebrus Technologies is 24.55 times more volatile than Oxford Metrics plc. It trades about 0.06 of its potential returns per unit of risk. Oxford Metrics plc is currently generating about -0.06 per unit of risk. If you would invest 175.00 in Celebrus Technologies plc on September 12, 2024 and sell it today you would earn a total of 29,475 from holding Celebrus Technologies plc or generate 16842.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Celebrus Technologies plc vs. Oxford Metrics plc
Performance |
| Timeline |
| Celebrus Technologies plc |
| Oxford Metrics plc |
Celebrus Technologies and Oxford Metrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebrus Technologies and Oxford Metrics
The main advantage of trading using opposite Celebrus Technologies and Oxford Metrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebrus Technologies position performs unexpectedly, Oxford Metrics 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 Oxford Metrics will offset losses from the drop in Oxford Metrics' long position.| Celebrus Technologies vs. Microlise Group PLC | Celebrus Technologies vs. Spectra Systems Corp | Celebrus Technologies vs. Neometals | Celebrus Technologies vs. Coor Service Management |
| Oxford Metrics vs. Air Products Chemicals | Oxford Metrics vs. Young Cos Brewery | Oxford Metrics vs. Celebrus Technologies plc | Oxford Metrics vs. Martin Marietta Materials |
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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