Correlation Between Eastwood Bio and Onex Corp
Can any of the company-specific risk be diversified away by investing in both Eastwood Bio and Onex Corp 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 Eastwood Bio and Onex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastwood Bio Medical Canada and Onex Corp, you can compare the effects of market volatilities on Eastwood Bio and Onex Corp 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 Eastwood Bio with a short position of Onex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastwood Bio and Onex Corp.
Diversification Opportunities for Eastwood Bio and Onex Corp
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastwood and Onex is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eastwood Bio Medical Canada and Onex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onex Corp and Eastwood Bio 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 Eastwood Bio Medical Canada are associated (or correlated) with Onex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onex Corp has no effect on the direction of Eastwood Bio i.e., Eastwood Bio and Onex Corp go up and down completely randomly.
Pair Corralation between Eastwood Bio and Onex Corp
Assuming the 90 days horizon Eastwood Bio Medical Canada is expected to generate 12.47 times more return on investment than Onex Corp. However, Eastwood Bio is 12.47 times more volatile than Onex Corp. It trades about 0.07 of its potential returns per unit of risk. Onex Corp is currently generating about 0.06 per unit of risk. If you would invest 88.00 in Eastwood Bio Medical Canada on September 3, 2024 and sell it today you would lose (13.00) from holding Eastwood Bio Medical Canada or give up 14.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Eastwood Bio Medical Canada vs. Onex Corp
Performance |
| Timeline |
| Eastwood Bio Medical |
| Onex Corp |
Eastwood Bio and Onex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastwood Bio and Onex Corp
The main advantage of trading using opposite Eastwood Bio and Onex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastwood Bio position performs unexpectedly, Onex Corp 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 Onex Corp will offset losses from the drop in Onex Corp's long position.| Eastwood Bio vs. Covalon Technologies | Eastwood Bio vs. Sirona Biochem Corp | Eastwood Bio vs. Medicure | Eastwood Bio vs. Arch Biopartners |
| Onex Corp vs. Intact Financial | Onex Corp vs. Open Text Corp | Onex Corp vs. Waste Connections | Onex Corp vs. Fairfax Financial Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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