Correlation Between Ocean Harvest and Apax Global
Can any of the company-specific risk be diversified away by investing in both Ocean Harvest and Apax Global 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 Ocean Harvest and Apax Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Harvest Technology and Apax Global Alpha, you can compare the effects of market volatilities on Ocean Harvest and Apax Global 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 Ocean Harvest with a short position of Apax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Harvest and Apax Global.
Diversification Opportunities for Ocean Harvest and Apax Global
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ocean and Apax is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Harvest Technology and Apax Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apax Global Alpha and Ocean Harvest 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 Ocean Harvest Technology are associated (or correlated) with Apax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apax Global Alpha has no effect on the direction of Ocean Harvest i.e., Ocean Harvest and Apax Global go up and down completely randomly.
Pair Corralation between Ocean Harvest and Apax Global
Assuming the 90 days trading horizon Ocean Harvest Technology is expected to under-perform the Apax Global. In addition to that, Ocean Harvest is 1.83 times more volatile than Apax Global Alpha. It trades about -0.03 of its total potential returns per unit of risk. Apax Global Alpha is currently generating about -0.02 per unit of volatility. If you would invest 18,520 in Apax Global Alpha on September 14, 2024 and sell it today you would lose (4,620) from holding Apax Global Alpha or give up 24.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.97% |
| Values | Daily Returns |
Ocean Harvest Technology vs. Apax Global Alpha
Performance |
| Timeline |
| Ocean Harvest Technology |
| Apax Global Alpha |
Ocean Harvest and Apax Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Harvest and Apax Global
The main advantage of trading using opposite Ocean Harvest and Apax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Harvest position performs unexpectedly, Apax Global 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 Apax Global will offset losses from the drop in Apax Global's long position.| Ocean Harvest vs. Samsung Electronics Co | Ocean Harvest vs. Samsung Electronics Co | Ocean Harvest vs. Hyundai Motor | Ocean Harvest vs. Toyota Motor Corp |
| Apax Global vs. Spotify Technology SA | Apax Global vs. Cognizant Technology Solutions | Apax Global vs. Alfa Financial Software | Apax Global vs. Ocean Harvest Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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