Correlation Between Oculis Holding and Fly Play
Can any of the company-specific risk be diversified away by investing in both Oculis Holding and Fly Play 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 Oculis Holding and Fly Play into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oculis Holding AG and Fly Play hf, you can compare the effects of market volatilities on Oculis Holding and Fly Play 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 Oculis Holding with a short position of Fly Play. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oculis Holding and Fly Play.
Diversification Opportunities for Oculis Holding and Fly Play
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oculis and Fly is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oculis Holding AG and Fly Play hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fly Play hf and Oculis Holding 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 Oculis Holding AG are associated (or correlated) with Fly Play. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fly Play hf has no effect on the direction of Oculis Holding i.e., Oculis Holding and Fly Play go up and down completely randomly.
Pair Corralation between Oculis Holding and Fly Play
Assuming the 90 days trading horizon Oculis Holding AG is expected to generate 0.44 times more return on investment than Fly Play. However, Oculis Holding AG is 2.26 times less risky than Fly Play. It trades about 0.1 of its potential returns per unit of risk. Fly Play hf is currently generating about -0.11 per unit of risk. If you would invest 169,000 in Oculis Holding AG on September 1, 2024 and sell it today you would earn a total of 55,000 from holding Oculis Holding AG or generate 32.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 41.18% |
| Values | Daily Returns |
Oculis Holding AG vs. Fly Play hf
Performance |
| Timeline |
| Oculis Holding AG |
| Fly Play hf |
Oculis Holding and Fly Play Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oculis Holding and Fly Play
The main advantage of trading using opposite Oculis Holding and Fly Play positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oculis Holding position performs unexpectedly, Fly Play 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 Fly Play will offset losses from the drop in Fly Play's long position.| Oculis Holding vs. Alvotech | Oculis Holding vs. Kvika banki hf | Oculis Holding vs. Arion banki hf | Oculis Holding vs. Iceland Seafood International |
| Fly Play vs. slandsbanki hf | Fly Play vs. Icelandair Group hf | Fly Play vs. Marel hf | Fly Play vs. Arion banki hf |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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