Correlation Between GlucoTrack and Owens Minor
Can any of the company-specific risk be diversified away by investing in both GlucoTrack and Owens Minor 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 GlucoTrack and Owens Minor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlucoTrack and Owens Minor, you can compare the effects of market volatilities on GlucoTrack and Owens Minor 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 GlucoTrack with a short position of Owens Minor. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlucoTrack and Owens Minor.
Diversification Opportunities for GlucoTrack and Owens Minor
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GlucoTrack and Owens is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GlucoTrack and Owens Minor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Minor and GlucoTrack 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 GlucoTrack are associated (or correlated) with Owens Minor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owens Minor has no effect on the direction of GlucoTrack i.e., GlucoTrack and Owens Minor go up and down completely randomly.
Pair Corralation between GlucoTrack and Owens Minor
Given the investment horizon of 90 days GlucoTrack is expected to under-perform the Owens Minor. In addition to that, GlucoTrack is 2.78 times more volatile than Owens Minor. It trades about -0.05 of its total potential returns per unit of risk. Owens Minor is currently generating about -0.05 per unit of volatility. If you would invest 1,844 in Owens Minor on November 9, 2024 and sell it today you would lose (979.00) from holding Owens Minor or give up 53.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlucoTrack vs. Owens Minor
Performance |
| Timeline |
| GlucoTrack |
| Owens Minor |
GlucoTrack and Owens Minor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlucoTrack and Owens Minor
The main advantage of trading using opposite GlucoTrack and Owens Minor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlucoTrack position performs unexpectedly, Owens Minor 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 Owens Minor will offset losses from the drop in Owens Minor's long position.| GlucoTrack vs. Nexgel Inc | GlucoTrack vs. Avinger | GlucoTrack vs. Sharps Technology | GlucoTrack vs. Innovative Eyewear |
| Owens Minor vs. Henry Schein | Owens Minor vs. Cardinal Health | Owens Minor vs. Zynex Inc | Owens Minor vs. Patterson Companies |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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