Correlation Between Ocean Harvest and Auction Technology
Can any of the company-specific risk be diversified away by investing in both Ocean Harvest and Auction Technology 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 Auction Technology 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 Auction Technology Group, you can compare the effects of market volatilities on Ocean Harvest and Auction Technology 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 Auction Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Harvest and Auction Technology.
Diversification Opportunities for Ocean Harvest and Auction Technology
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ocean and Auction is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Harvest Technology and Auction Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auction Technology 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 Auction Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auction Technology has no effect on the direction of Ocean Harvest i.e., Ocean Harvest and Auction Technology go up and down completely randomly.
Pair Corralation between Ocean Harvest and Auction Technology
Assuming the 90 days trading horizon Ocean Harvest Technology is expected to under-perform the Auction Technology. In addition to that, Ocean Harvest is 1.31 times more volatile than Auction Technology Group. It trades about -0.14 of its total potential returns per unit of risk. Auction Technology Group is currently generating about 0.04 per unit of volatility. If you would invest 58,000 in Auction Technology Group on November 18, 2024 and sell it today you would earn a total of 700.00 from holding Auction Technology Group or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Harvest Technology vs. Auction Technology Group
Performance |
| Timeline |
| Ocean Harvest Technology |
| Auction Technology |
Ocean Harvest and Auction Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Harvest and Auction Technology
The main advantage of trading using opposite Ocean Harvest and Auction Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Harvest position performs unexpectedly, Auction Technology 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 Auction Technology will offset losses from the drop in Auction Technology's long position.| Ocean Harvest vs. AfriTin Mining | Ocean Harvest vs. Empire Metals Limited | Ocean Harvest vs. Aeorema Communications Plc | Ocean Harvest vs. CNH Industrial NV |
| Auction Technology vs. Roper Technologies | Auction Technology vs. Fevertree Drinks Plc | Auction Technology vs. Learning Technologies Group | Auction Technology vs. Concurrent Technologies Plc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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