Correlation Between OAKTRSPECLENDNEW and EHEALTH
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and EHEALTH 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 OAKTRSPECLENDNEW and EHEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and EHEALTH, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and EHEALTH 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 OAKTRSPECLENDNEW with a short position of EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and EHEALTH.
Diversification Opportunities for OAKTRSPECLENDNEW and EHEALTH
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OAKTRSPECLENDNEW and EHEALTH is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and EHEALTH go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and EHEALTH
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to generate 0.35 times more return on investment than EHEALTH. However, OAKTRSPECLENDNEW is 2.85 times less risky than EHEALTH. It trades about 0.01 of its potential returns per unit of risk. EHEALTH is currently generating about -0.14 per unit of risk. If you would invest 1,513 in OAKTRSPECLENDNEW on December 1, 2024 and sell it today you would earn a total of 3.00 from holding OAKTRSPECLENDNEW or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. EHEALTH
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| EHEALTH |
OAKTRSPECLENDNEW and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and EHEALTH
The main advantage of trading using opposite OAKTRSPECLENDNEW and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.| OAKTRSPECLENDNEW vs. MONEYSUPERMARKET | OAKTRSPECLENDNEW vs. AGF Management Limited | OAKTRSPECLENDNEW vs. SENECA FOODS A | OAKTRSPECLENDNEW vs. Fevertree Drinks PLC |
| EHEALTH vs. EVS Broadcast Equipment | EHEALTH vs. BROADPEAK SA EO | EHEALTH vs. NAGOYA RAILROAD | EHEALTH vs. UNITED UTILITIES GP |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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