Correlation Between I3 Verticals and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both I3 Verticals and Oneconnect Financial 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 I3 Verticals and Oneconnect Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i3 Verticals and Oneconnect Financial Technology, you can compare the effects of market volatilities on I3 Verticals and Oneconnect Financial 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 I3 Verticals with a short position of Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of I3 Verticals and Oneconnect Financial.
Diversification Opportunities for I3 Verticals and Oneconnect Financial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IIIV and Oneconnect is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding i3 Verticals and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial and I3 Verticals 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 i3 Verticals are associated (or correlated) with Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of I3 Verticals i.e., I3 Verticals and Oneconnect Financial go up and down completely randomly.
Pair Corralation between I3 Verticals and Oneconnect Financial
Given the investment horizon of 90 days i3 Verticals is expected to generate 0.33 times more return on investment than Oneconnect Financial. However, i3 Verticals is 3.07 times less risky than Oneconnect Financial. It trades about 0.01 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.0 per unit of risk. If you would invest 2,406 in i3 Verticals on August 27, 2024 and sell it today you would lose (39.00) from holding i3 Verticals or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
i3 Verticals vs. Oneconnect Financial Technolog
Performance |
| Timeline |
| i3 Verticals |
| Oneconnect Financial |
I3 Verticals and Oneconnect Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I3 Verticals and Oneconnect Financial
The main advantage of trading using opposite I3 Verticals and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I3 Verticals position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial's long position.| I3 Verticals vs. Evertec | I3 Verticals vs. Couchbase | I3 Verticals vs. Flywire Corp | I3 Verticals vs. Euronet Worldwide |
| Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |