Correlation Between Oasis Hotel and Globalfoundries
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel and Globalfoundries 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 Oasis Hotel and Globalfoundries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Globalfoundries, you can compare the effects of market volatilities on Oasis Hotel and Globalfoundries 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 Oasis Hotel with a short position of Globalfoundries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Globalfoundries.
Diversification Opportunities for Oasis Hotel and Globalfoundries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Globalfoundries is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and Globalfoundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalfoundries and Oasis Hotel 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 Oasis Hotel Resort are associated (or correlated) with Globalfoundries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalfoundries has no effect on the direction of Oasis Hotel i.e., Oasis Hotel and Globalfoundries go up and down completely randomly.
Pair Corralation between Oasis Hotel and Globalfoundries
If you would invest 3,812 in Globalfoundries on August 31, 2024 and sell it today you would earn a total of 473.00 from holding Globalfoundries or generate 12.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oasis Hotel Resort vs. Globalfoundries
Performance |
| Timeline |
| Oasis Hotel Resort |
| Globalfoundries |
Oasis Hotel and Globalfoundries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and Globalfoundries
The main advantage of trading using opposite Oasis Hotel and Globalfoundries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel position performs unexpectedly, Globalfoundries 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 Globalfoundries will offset losses from the drop in Globalfoundries' long position.| Oasis Hotel vs. FormFactor | Oasis Hotel vs. Advanced Micro Devices | Oasis Hotel vs. Micron Technology | Oasis Hotel vs. Entegris |
| Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |