Correlation Between Oversea Chinese and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Oversea Chinese and XTANT MEDICAL 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 Oversea Chinese and XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oversea Chinese Banking and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Oversea Chinese and XTANT MEDICAL 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 Oversea Chinese with a short position of XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oversea Chinese and XTANT MEDICAL.
Diversification Opportunities for Oversea Chinese and XTANT MEDICAL
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oversea and XTANT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Oversea Chinese Banking and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS and Oversea Chinese 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 Oversea Chinese Banking are associated (or correlated) with XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of Oversea Chinese i.e., Oversea Chinese and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Oversea Chinese and XTANT MEDICAL
Assuming the 90 days trading horizon Oversea Chinese Banking is expected to generate 0.68 times more return on investment than XTANT MEDICAL. However, Oversea Chinese Banking is 1.47 times less risky than XTANT MEDICAL. It trades about -0.04 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about -0.13 per unit of risk. If you would invest 1,172 in Oversea Chinese Banking on September 24, 2024 and sell it today you would lose (14.00) from holding Oversea Chinese Banking or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oversea Chinese Banking vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Oversea Chinese Banking |
| XTANT MEDICAL HLDGS |
Oversea Chinese and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oversea Chinese and XTANT MEDICAL
The main advantage of trading using opposite Oversea Chinese and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oversea Chinese position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| Oversea Chinese vs. POSBO UNSPADRS20YC1 | Oversea Chinese vs. Postal Savings Bank | Oversea Chinese vs. Truist Financial | Oversea Chinese vs. OVERSEA CHINUNSPADR2 |
| XTANT MEDICAL vs. SHIN ETSU CHEMICAL | XTANT MEDICAL vs. SEKISUI CHEMICAL | XTANT MEDICAL vs. Soken Chemical Engineering | XTANT MEDICAL vs. Silicon Motion Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |