Correlation Between Mowi ASA and Optimi Health
Can any of the company-specific risk be diversified away by investing in both Mowi ASA and Optimi Health 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 Mowi ASA and Optimi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mowi ASA ADR and Optimi Health Corp, you can compare the effects of market volatilities on Mowi ASA and Optimi Health 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 Mowi ASA with a short position of Optimi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mowi ASA and Optimi Health.
Diversification Opportunities for Mowi ASA and Optimi Health
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mowi and Optimi is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA ADR and Optimi Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimi Health Corp and Mowi ASA 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 Mowi ASA ADR are associated (or correlated) with Optimi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimi Health Corp has no effect on the direction of Mowi ASA i.e., Mowi ASA and Optimi Health go up and down completely randomly.
Pair Corralation between Mowi ASA and Optimi Health
Assuming the 90 days horizon Mowi ASA ADR is expected to generate 0.24 times more return on investment than Optimi Health. However, Mowi ASA ADR is 4.08 times less risky than Optimi Health. It trades about 0.19 of its potential returns per unit of risk. Optimi Health Corp is currently generating about 0.02 per unit of risk. If you would invest 1,551 in Mowi ASA ADR on August 30, 2024 and sell it today you would earn a total of 210.00 from holding Mowi ASA ADR or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.28% |
| Values | Daily Returns |
Mowi ASA ADR vs. Optimi Health Corp
Performance |
| Timeline |
| Mowi ASA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Optimi Health Corp |
Mowi ASA and Optimi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mowi ASA and Optimi Health
The main advantage of trading using opposite Mowi ASA and Optimi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mowi ASA position performs unexpectedly, Optimi Health 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 Optimi Health will offset losses from the drop in Optimi Health's long position.| Mowi ASA vs. Compagnie Generale des | Mowi ASA vs. Adecco Group | Mowi ASA vs. Sandvik AB ADR | Mowi ASA vs. Central Japan Railway |
| Optimi Health vs. Cybin Inc | Optimi Health vs. TAAT Global Alternatives | Optimi Health vs. Spey Resources Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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