Correlation Between Oak Woods and Baselode Energy
Can any of the company-specific risk be diversified away by investing in both Oak Woods and Baselode Energy 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 Oak Woods and Baselode Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oak Woods Acquisition and Baselode Energy Corp, you can compare the effects of market volatilities on Oak Woods and Baselode Energy 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 Oak Woods with a short position of Baselode Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Woods and Baselode Energy.
Diversification Opportunities for Oak Woods and Baselode Energy
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oak and Baselode is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Oak Woods Acquisition and Baselode Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baselode Energy Corp and Oak Woods 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 Oak Woods Acquisition are associated (or correlated) with Baselode Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baselode Energy Corp has no effect on the direction of Oak Woods i.e., Oak Woods and Baselode Energy go up and down completely randomly.
Pair Corralation between Oak Woods and Baselode Energy
Given the investment horizon of 90 days Oak Woods Acquisition is expected to generate 0.05 times more return on investment than Baselode Energy. However, Oak Woods Acquisition is 19.13 times less risky than Baselode Energy. It trades about 0.12 of its potential returns per unit of risk. Baselode Energy Corp is currently generating about -0.27 per unit of risk. If you would invest 1,117 in Oak Woods Acquisition on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Oak Woods Acquisition or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oak Woods Acquisition vs. Baselode Energy Corp
Performance |
| Timeline |
| Oak Woods Acquisition |
| Baselode Energy Corp |
Oak Woods and Baselode Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Woods and Baselode Energy
The main advantage of trading using opposite Oak Woods and Baselode Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Woods position performs unexpectedly, Baselode Energy 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 Baselode Energy will offset losses from the drop in Baselode Energy's long position.| Oak Woods vs. Grocery Outlet Holding | Oak Woods vs. FitLife Brands, Common | Oak Woods vs. Radcom | Oak Woods vs. Tyson Foods |
| Baselode Energy vs. Anfield Resources | Baselode Energy vs. Purepoint Uranium Group | Baselode Energy vs. Aura Energy Limited | Baselode Energy vs. ALX 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |