Correlation Between OFFICE DEPOT and THERMO FISHER
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and THERMO FISHER 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 OFFICE DEPOT and THERMO FISHER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and THERMO FISHER SCIEN, you can compare the effects of market volatilities on OFFICE DEPOT and THERMO FISHER 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 OFFICE DEPOT with a short position of THERMO FISHER. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and THERMO FISHER.
Diversification Opportunities for OFFICE DEPOT and THERMO FISHER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and THERMO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and THERMO FISHER SCIEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THERMO FISHER SCIEN and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with THERMO FISHER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THERMO FISHER SCIEN has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and THERMO FISHER go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and THERMO FISHER
If you would invest 1,920 in OFFICE DEPOT on August 24, 2024 and sell it today you would earn a total of 0.00 from holding OFFICE DEPOT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. THERMO FISHER SCIEN
Performance |
| Timeline |
| OFFICE DEPOT |
| THERMO FISHER SCIEN |
OFFICE DEPOT and THERMO FISHER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and THERMO FISHER
The main advantage of trading using opposite OFFICE DEPOT and THERMO FISHER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, THERMO FISHER 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 THERMO FISHER will offset losses from the drop in THERMO FISHER's long position.| OFFICE DEPOT vs. Vastned Retail NV | OFFICE DEPOT vs. Sunny Optical Technology | OFFICE DEPOT vs. Uber Technologies | OFFICE DEPOT vs. Lendlease Group |
| THERMO FISHER vs. ALBIS LEASING AG | THERMO FISHER vs. OFFICE DEPOT | THERMO FISHER vs. MAVEN WIRELESS SWEDEN | THERMO FISHER vs. FUYO GENERAL LEASE |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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