Correlation Between Trump Media and Oxbridge
Can any of the company-specific risk be diversified away by investing in both Trump Media and Oxbridge 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 Trump Media and Oxbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trump Media Technology and Oxbridge Re Holdings, you can compare the effects of market volatilities on Trump Media and Oxbridge 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 Trump Media with a short position of Oxbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trump Media and Oxbridge.
Diversification Opportunities for Trump Media and Oxbridge
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Trump and Oxbridge is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Trump Media Technology and Oxbridge Re Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Re Holdings and Trump Media 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 Trump Media Technology are associated (or correlated) with Oxbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Re Holdings has no effect on the direction of Trump Media i.e., Trump Media and Oxbridge go up and down completely randomly.
Pair Corralation between Trump Media and Oxbridge
Considering the 90-day investment horizon Trump Media is expected to generate 3.57 times less return on investment than Oxbridge. But when comparing it to its historical volatility, Trump Media Technology is 1.05 times less risky than Oxbridge. It trades about 0.04 of its potential returns per unit of risk. Oxbridge Re Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 382.00 in Oxbridge Re Holdings on October 23, 2024 and sell it today you would earn a total of 50.50 from holding Oxbridge Re Holdings or generate 13.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trump Media Technology vs. Oxbridge Re Holdings
Performance |
| Timeline |
| Trump Media Technology |
| Oxbridge Re Holdings |
Trump Media and Oxbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trump Media and Oxbridge
The main advantage of trading using opposite Trump Media and Oxbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trump Media position performs unexpectedly, Oxbridge 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 Oxbridge will offset losses from the drop in Oxbridge's long position.| Trump Media vs. Romana Food Brands | Trump Media vs. Olympic Steel | Trump Media vs. The Gap, | Trump Media vs. Sysco |
| Oxbridge vs. Muenchener Rueckver Ges | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. Maiden Holdings | Oxbridge vs. Swiss Re |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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