Correlation Between Oak Woods and Omnilit Acquisition
Can any of the company-specific risk be diversified away by investing in both Oak Woods and Omnilit 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 Oak Woods and Omnilit Acquisition 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 Omnilit Acquisition Corp, you can compare the effects of market volatilities on Oak Woods and Omnilit 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 Oak Woods with a short position of Omnilit Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Woods and Omnilit Acquisition.
Diversification Opportunities for Oak Woods and Omnilit Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oak and Omnilit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oak Woods Acquisition and Omnilit Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnilit Acquisition 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 Omnilit Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnilit Acquisition Corp has no effect on the direction of Oak Woods i.e., Oak Woods and Omnilit Acquisition go up and down completely randomly.
Pair Corralation between Oak Woods and Omnilit Acquisition
Assuming the 90 days horizon Oak Woods Acquisition is expected to generate 3.12 times more return on investment than Omnilit Acquisition. However, Oak Woods is 3.12 times more volatile than Omnilit Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. Omnilit Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest 1,000.00 in Oak Woods Acquisition on November 2, 2024 and sell it today you would earn a total of 161.00 from holding Oak Woods Acquisition or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 23.77% |
| Values | Daily Returns |
Oak Woods Acquisition vs. Omnilit Acquisition Corp
Performance |
| Timeline |
| Oak Woods Acquisition |
| Omnilit Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oak Woods and Omnilit Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Woods and Omnilit Acquisition
The main advantage of trading using opposite Oak Woods and Omnilit Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Woods position performs unexpectedly, Omnilit 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 Omnilit Acquisition will offset losses from the drop in Omnilit Acquisition's long position.| Oak Woods vs. Summit Hotel Properties | Oak Woods vs. Canaf Investments | Oak Woods vs. AA Mission Acquisition | Oak Woods vs. Futuretech II Acquisition |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |