Correlation Between Ocado Group and Ocado Group
Can any of the company-specific risk be diversified away by investing in both Ocado Group and Ocado Group 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 Ocado Group and Ocado Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocado Group plc and Ocado Group PLC, you can compare the effects of market volatilities on Ocado Group and Ocado Group 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 Ocado Group with a short position of Ocado Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocado Group and Ocado Group.
Diversification Opportunities for Ocado Group and Ocado Group
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ocado and Ocado is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ocado Group plc and Ocado Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocado Group PLC and Ocado Group 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 Ocado Group plc are associated (or correlated) with Ocado Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocado Group PLC has no effect on the direction of Ocado Group i.e., Ocado Group and Ocado Group go up and down completely randomly.
Pair Corralation between Ocado Group and Ocado Group
Assuming the 90 days horizon Ocado Group plc is expected to generate 0.96 times more return on investment than Ocado Group. However, Ocado Group plc is 1.04 times less risky than Ocado Group. It trades about -0.02 of its potential returns per unit of risk. Ocado Group PLC is currently generating about -0.02 per unit of risk. If you would invest 1,462 in Ocado Group plc on August 28, 2024 and sell it today you would lose (709.00) from holding Ocado Group plc or give up 48.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Ocado Group plc vs. Ocado Group PLC
Performance |
| Timeline |
| Ocado Group plc |
| Ocado Group PLC |
Ocado Group and Ocado Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocado Group and Ocado Group
The main advantage of trading using opposite Ocado Group and Ocado Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocado Group position performs unexpectedly, Ocado Group 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 Ocado Group will offset losses from the drop in Ocado Group's long position.| Ocado Group vs. Natural Grocers by | Ocado Group vs. Grocery Outlet Holding | Ocado Group vs. Village Super Market | Ocado Group vs. Ingles Markets Incorporated |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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