Correlation Between Miivo Holdings and Ocumetics Technology

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Can any of the company-specific risk be diversified away by investing in both Miivo Holdings and Ocumetics Technology 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 Miivo Holdings and Ocumetics Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miivo Holdings Corp and Ocumetics Technology Corp, you can compare the effects of market volatilities on Miivo Holdings and Ocumetics Technology 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 Miivo Holdings with a short position of Ocumetics Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miivo Holdings and Ocumetics Technology.

Diversification Opportunities for Miivo Holdings and Ocumetics Technology

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between Miivo and Ocumetics is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Miivo Holdings Corp and Ocumetics Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocumetics Technology Corp and Miivo Holdings 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 Miivo Holdings Corp are associated (or correlated) with Ocumetics Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocumetics Technology Corp has no effect on the direction of Miivo Holdings i.e., Miivo Holdings and Ocumetics Technology go up and down completely randomly.

Pair Corralation between Miivo Holdings and Ocumetics Technology

If you would invest  44.00  in Ocumetics Technology Corp on September 14, 2024 and sell it today you would lose (15.00) from holding Ocumetics Technology Corp or give up 34.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Miivo Holdings Corp  vs.  Ocumetics Technology Corp

 Performance 
       Timeline  
Miivo Holdings Corp 

Risk-Adjusted Performance

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OK
Over the last 90 days Miivo Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Miivo Holdings showed solid returns over the last few months and may actually be approaching a breakup point.
Ocumetics Technology Corp 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Ocumetics Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Ocumetics Technology is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Miivo Holdings and Ocumetics Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Miivo Holdings and Ocumetics Technology

The main advantage of trading using opposite Miivo Holdings and Ocumetics Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miivo Holdings position performs unexpectedly, Ocumetics Technology 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 Ocumetics Technology will offset losses from the drop in Ocumetics Technology's long position.
The idea behind Miivo Holdings Corp and Ocumetics Technology Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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