Correlation Between Life Time and Oasmia Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Life Time and Oasmia Pharmaceutical 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 Life Time and Oasmia Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on Life Time and Oasmia Pharmaceutical 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 Life Time with a short position of Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Oasmia Pharmaceutical.
Diversification Opportunities for Life Time and Oasmia Pharmaceutical
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Life and Oasmia is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical and Life Time 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 Life Time Group are associated (or correlated) with Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of Life Time i.e., Life Time and Oasmia Pharmaceutical go up and down completely randomly.
Pair Corralation between Life Time and Oasmia Pharmaceutical
If you would invest 2,060 in Life Time Group on August 31, 2024 and sell it today you would earn a total of 367.00 from holding Life Time Group or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Life Time Group vs. Oasmia Pharmaceutical AB
Performance |
| Timeline |
| Life Time Group |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Life Time and Oasmia Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and Oasmia Pharmaceutical
The main advantage of trading using opposite Life Time and Oasmia Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, Oasmia Pharmaceutical 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 Oasmia Pharmaceutical will offset losses from the drop in Oasmia Pharmaceutical's long position.| Life Time vs. Bowlero Corp | Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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