Correlation Between Oriental Land and Flight Centre
Can any of the company-specific risk be diversified away by investing in both Oriental Land and Flight Centre 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 Oriental Land and Flight Centre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Land Co and Flight Centre Travel, you can compare the effects of market volatilities on Oriental Land and Flight Centre 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 Oriental Land with a short position of Flight Centre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Land and Flight Centre.
Diversification Opportunities for Oriental Land and Flight Centre
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oriental and Flight is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Land Co and Flight Centre Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flight Centre Travel and Oriental Land 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 Oriental Land Co are associated (or correlated) with Flight Centre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flight Centre Travel has no effect on the direction of Oriental Land i.e., Oriental Land and Flight Centre go up and down completely randomly.
Pair Corralation between Oriental Land and Flight Centre
Assuming the 90 days horizon Oriental Land Co is expected to under-perform the Flight Centre. In addition to that, Oriental Land is 1.31 times more volatile than Flight Centre Travel. It trades about -0.21 of its total potential returns per unit of risk. Flight Centre Travel is currently generating about 0.16 per unit of volatility. If you would invest 1,000.00 in Flight Centre Travel on November 28, 2024 and sell it today you would earn a total of 60.00 from holding Flight Centre Travel or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oriental Land Co vs. Flight Centre Travel
Performance |
| Timeline |
| Oriental Land |
| Flight Centre Travel |
Oriental Land and Flight Centre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Land and Flight Centre
The main advantage of trading using opposite Oriental Land and Flight Centre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Land position performs unexpectedly, Flight Centre 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 Flight Centre will offset losses from the drop in Flight Centre's long position.| Oriental Land vs. DICKS Sporting Goods | Oriental Land vs. Richardson Electronics | Oriental Land vs. COLUMBIA SPORTSWEAR | Oriental Land vs. STMICROELECTRONICS |
| Flight Centre vs. MELIA HOTELS | Flight Centre vs. Meli Hotels International | Flight Centre vs. Sinopec Shanghai Petrochemical | Flight Centre vs. MHP Hotel AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |