Correlation Between Oculis Holding and LAir Liquide
Can any of the company-specific risk be diversified away by investing in both Oculis Holding and LAir Liquide 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 LAir Liquide 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 LAir Liquide SA, you can compare the effects of market volatilities on Oculis Holding and LAir Liquide 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 LAir Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oculis Holding and LAir Liquide.
Diversification Opportunities for Oculis Holding and LAir Liquide
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oculis and LAir is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Oculis Holding AG and LAir Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAir Liquide SA 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 LAir Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAir Liquide SA has no effect on the direction of Oculis Holding i.e., Oculis Holding and LAir Liquide go up and down completely randomly.
Pair Corralation between Oculis Holding and LAir Liquide
Assuming the 90 days horizon Oculis Holding AG is expected to generate 6.77 times more return on investment than LAir Liquide. However, Oculis Holding is 6.77 times more volatile than LAir Liquide SA. It trades about 0.4 of its potential returns per unit of risk. LAir Liquide SA is currently generating about 0.39 per unit of risk. If you would invest 583.00 in Oculis Holding AG on November 4, 2024 and sell it today you would earn a total of 489.00 from holding Oculis Holding AG or generate 83.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oculis Holding AG vs. LAir Liquide SA
Performance |
| Timeline |
| Oculis Holding AG |
| LAir Liquide SA |
Oculis Holding and LAir Liquide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oculis Holding and LAir Liquide
The main advantage of trading using opposite Oculis Holding and LAir Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oculis Holding position performs unexpectedly, LAir Liquide 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 LAir Liquide will offset losses from the drop in LAir Liquide's long position.| Oculis Holding vs. ServiceNow | Oculis Holding vs. Senmiao Technology | Oculis Holding vs. Alvotech | Oculis Holding vs. Alto Neuroscience, |
| LAir Liquide vs. Asia Carbon Industries | LAir Liquide vs. Akzo Nobel NV | LAir Liquide vs. Avoca LLC | LAir Liquide vs. AGC Inc ADR |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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