Correlation Between Ondine Biomedical and EasyJet PLC
Can any of the company-specific risk be diversified away by investing in both Ondine Biomedical and EasyJet PLC 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 Ondine Biomedical and EasyJet PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ondine Biomedical and EasyJet PLC, you can compare the effects of market volatilities on Ondine Biomedical and EasyJet PLC 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 Ondine Biomedical with a short position of EasyJet PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ondine Biomedical and EasyJet PLC.
Diversification Opportunities for Ondine Biomedical and EasyJet PLC
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ondine and EasyJet is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ondine Biomedical and EasyJet PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EasyJet PLC and Ondine Biomedical 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 Ondine Biomedical are associated (or correlated) with EasyJet PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EasyJet PLC has no effect on the direction of Ondine Biomedical i.e., Ondine Biomedical and EasyJet PLC go up and down completely randomly.
Pair Corralation between Ondine Biomedical and EasyJet PLC
Assuming the 90 days trading horizon Ondine Biomedical is expected to generate 3.27 times more return on investment than EasyJet PLC. However, Ondine Biomedical is 3.27 times more volatile than EasyJet PLC. It trades about 0.33 of its potential returns per unit of risk. EasyJet PLC is currently generating about -0.39 per unit of risk. If you would invest 900.00 in Ondine Biomedical on October 29, 2024 and sell it today you would earn a total of 375.00 from holding Ondine Biomedical or generate 41.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ondine Biomedical vs. EasyJet PLC
Performance |
Timeline |
Ondine Biomedical |
EasyJet PLC |
Ondine Biomedical and EasyJet PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ondine Biomedical and EasyJet PLC
The main advantage of trading using opposite Ondine Biomedical and EasyJet PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ondine Biomedical position performs unexpectedly, EasyJet PLC 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 EasyJet PLC will offset losses from the drop in EasyJet PLC's long position.Ondine Biomedical vs. PPHE Hotel Group | Ondine Biomedical vs. Ross Stores | Ondine Biomedical vs. Nordea Bank Abp | Ondine Biomedical vs. Scandic Hotels Group |
EasyJet PLC vs. National Beverage Corp | EasyJet PLC vs. Aptitude Software Group | EasyJet PLC vs. Symphony Environmental Technologies | EasyJet PLC vs. Molson Coors Beverage |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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