Correlation Between Oneconnect Financial and Maximus
Can any of the company-specific risk be diversified away by investing in both Oneconnect Financial and Maximus 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 Oneconnect Financial and Maximus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oneconnect Financial Technology and Maximus, you can compare the effects of market volatilities on Oneconnect Financial and Maximus 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 Oneconnect Financial with a short position of Maximus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneconnect Financial and Maximus.
Diversification Opportunities for Oneconnect Financial and Maximus
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oneconnect and Maximus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oneconnect Financial Technolog and Maximus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maximus and Oneconnect Financial 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 Oneconnect Financial Technology are associated (or correlated) with Maximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maximus has no effect on the direction of Oneconnect Financial i.e., Oneconnect Financial and Maximus go up and down completely randomly.
Pair Corralation between Oneconnect Financial and Maximus
Given the investment horizon of 90 days Oneconnect Financial is expected to generate 1.47 times less return on investment than Maximus. In addition to that, Oneconnect Financial is 4.94 times more volatile than Maximus. It trades about 0.0 of its total potential returns per unit of risk. Maximus is currently generating about 0.01 per unit of volatility. If you would invest 6,929 in Maximus on August 30, 2024 and sell it today you would earn a total of 321.00 from holding Maximus or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oneconnect Financial Technolog vs. Maximus
Performance |
| Timeline |
| Oneconnect Financial |
| Maximus |
Oneconnect Financial and Maximus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oneconnect Financial and Maximus
The main advantage of trading using opposite Oneconnect Financial and Maximus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneconnect Financial position performs unexpectedly, Maximus 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 Maximus will offset losses from the drop in Maximus' long position.| Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud Holdings |
| Maximus vs. Network 1 Technologies | Maximus vs. First Advantage Corp | Maximus vs. BrightView Holdings | Maximus vs. Civeo Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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