Correlation Between Fagron NV and Oxurion NV
Can any of the company-specific risk be diversified away by investing in both Fagron NV and Oxurion NV 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 Fagron NV and Oxurion NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fagron NV and Oxurion NV, you can compare the effects of market volatilities on Fagron NV and Oxurion NV 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 Fagron NV with a short position of Oxurion NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fagron NV and Oxurion NV.
Diversification Opportunities for Fagron NV and Oxurion NV
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fagron and Oxurion is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fagron NV and Oxurion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxurion NV and Fagron NV 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 Fagron NV are associated (or correlated) with Oxurion NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxurion NV has no effect on the direction of Fagron NV i.e., Fagron NV and Oxurion NV go up and down completely randomly.
Pair Corralation between Fagron NV and Oxurion NV
Assuming the 90 days trading horizon Fagron NV is expected to under-perform the Oxurion NV. But the stock apears to be less risky and, when comparing its historical volatility, Fagron NV is 84.02 times less risky than Oxurion NV. The stock trades about 0.0 of its potential returns per unit of risk. The Oxurion NV is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Oxurion NV on August 29, 2024 and sell it today you would lose (70.00) from holding Oxurion NV or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fagron NV vs. Oxurion NV
Performance |
| Timeline |
| Fagron NV |
| Oxurion NV |
Fagron NV and Oxurion NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fagron NV and Oxurion NV
The main advantage of trading using opposite Fagron NV and Oxurion NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fagron NV position performs unexpectedly, Oxurion NV 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 Oxurion NV will offset losses from the drop in Oxurion NV's long position.| Fagron NV vs. Tessenderlo | Fagron NV vs. NV Bekaert SA | Fagron NV vs. Ontex Group NV | Fagron NV vs. Argen X |
| Oxurion NV vs. Biocartis Group NV | Oxurion NV vs. Celyad SA | Oxurion NV vs. Argen X | Oxurion NV vs. Exmar NV |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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