Correlation Between NYSE Composite and Oxbridge Acquisition
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Oxbridge Acquisition 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 NYSE Composite and Oxbridge Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Oxbridge Acquisition Corp, you can compare the effects of market volatilities on NYSE Composite and Oxbridge Acquisition 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 NYSE Composite with a short position of Oxbridge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Oxbridge Acquisition.
Diversification Opportunities for NYSE Composite and Oxbridge Acquisition
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Oxbridge is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Oxbridge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Acquisition Corp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Oxbridge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Acquisition Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Oxbridge Acquisition go up and down completely randomly.
Pair Corralation between NYSE Composite and Oxbridge Acquisition
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.32 times more return on investment than Oxbridge Acquisition. However, NYSE Composite is 2.32 times more volatile than Oxbridge Acquisition Corp. It trades about 0.08 of its potential returns per unit of risk. Oxbridge Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest 1,549,498 in NYSE Composite on September 4, 2024 and sell it today you would earn a total of 471,824 from holding NYSE Composite or generate 30.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.51% |
| Values | Daily Returns |
NYSE Composite vs. Oxbridge Acquisition Corp
Performance |
| Timeline |
NYSE Composite and Oxbridge Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Oxbridge Acquisition Corp
Pair trading matchups for Oxbridge Acquisition
Pair Trading with NYSE Composite and Oxbridge Acquisition
The main advantage of trading using opposite NYSE Composite and Oxbridge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Oxbridge Acquisition 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 Oxbridge Acquisition will offset losses from the drop in Oxbridge Acquisition's long position.| NYSE Composite vs. Kite Realty Group | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Meiwu Technology Co | NYSE Composite vs. Uber Technologies |
| Oxbridge Acquisition vs. Portage Fintech Acquisition | Oxbridge Acquisition vs. Swiftmerge Acquisition Corp | Oxbridge Acquisition vs. Four Leaf Acquisition | Oxbridge Acquisition vs. IX Acquisition 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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