Correlation Between Origin Bancorp, and European Wax
Can any of the company-specific risk be diversified away by investing in both Origin Bancorp, and European Wax 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 Origin Bancorp, and European Wax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Bancorp, and European Wax Center, you can compare the effects of market volatilities on Origin Bancorp, and European Wax 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 Origin Bancorp, with a short position of European Wax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Bancorp, and European Wax.
Diversification Opportunities for Origin Bancorp, and European Wax
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and European is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Origin Bancorp, and European Wax Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Wax Center and Origin Bancorp, 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 Origin Bancorp, are associated (or correlated) with European Wax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Wax Center has no effect on the direction of Origin Bancorp, i.e., Origin Bancorp, and European Wax go up and down completely randomly.
Pair Corralation between Origin Bancorp, and European Wax
Considering the 90-day investment horizon Origin Bancorp, is expected to generate 0.59 times more return on investment than European Wax. However, Origin Bancorp, is 1.69 times less risky than European Wax. It trades about 0.0 of its potential returns per unit of risk. European Wax Center is currently generating about -0.04 per unit of risk. If you would invest 3,649 in Origin Bancorp, on October 9, 2024 and sell it today you would lose (308.00) from holding Origin Bancorp, or give up 8.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Bancorp, vs. European Wax Center
Performance |
| Timeline |
| Origin Bancorp, |
| European Wax Center |
Origin Bancorp, and European Wax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Bancorp, and European Wax
The main advantage of trading using opposite Origin Bancorp, and European Wax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Bancorp, position performs unexpectedly, European Wax 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 European Wax will offset losses from the drop in European Wax's long position.| Origin Bancorp, vs. Delek Drilling | Origin Bancorp, vs. Energold Drilling Corp | Origin Bancorp, vs. Mangazeya Mining | Origin Bancorp, vs. Summa Silver Corp |
| European Wax vs. Edgewell Personal Care | European Wax vs. Inter Parfums | European Wax vs. Henkel AG Co | European Wax vs. Mannatech Incorporated |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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