Correlation Between Oneconnect Financial and Riskified
Can any of the company-specific risk be diversified away by investing in both Oneconnect Financial and Riskified 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 Riskified 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 Riskified, you can compare the effects of market volatilities on Oneconnect Financial and Riskified 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 Riskified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneconnect Financial and Riskified.
Diversification Opportunities for Oneconnect Financial and Riskified
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oneconnect and Riskified is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Oneconnect Financial Technolog and Riskified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riskified 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 Riskified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riskified has no effect on the direction of Oneconnect Financial i.e., Oneconnect Financial and Riskified go up and down completely randomly.
Pair Corralation between Oneconnect Financial and Riskified
Given the investment horizon of 90 days Oneconnect Financial is expected to generate 8.22 times less return on investment than Riskified. In addition to that, Oneconnect Financial is 2.07 times more volatile than Riskified. It trades about 0.01 of its total potential returns per unit of risk. Riskified is currently generating about 0.12 per unit of volatility. If you would invest 450.00 in Riskified on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Riskified or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oneconnect Financial Technolog vs. Riskified
Performance |
| Timeline |
| Oneconnect Financial |
| Riskified |
Oneconnect Financial and Riskified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oneconnect Financial and Riskified
The main advantage of trading using opposite Oneconnect Financial and Riskified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneconnect Financial position performs unexpectedly, Riskified 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 Riskified will offset losses from the drop in Riskified's long position.| Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud Holdings |
| Riskified vs. Semrush Holdings | Riskified vs. Meridianlink | Riskified vs. MondayCom | Riskified vs. SimilarWeb |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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