Correlation Between Omico Corp and Converge Information
Can any of the company-specific risk be diversified away by investing in both Omico Corp and Converge Information 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 Omico Corp and Converge Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omico Corp and Converge Information Communications, you can compare the effects of market volatilities on Omico Corp and Converge Information 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 Omico Corp with a short position of Converge Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omico Corp and Converge Information.
Diversification Opportunities for Omico Corp and Converge Information
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Omico and Converge is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Omico Corp and Converge Information Communica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Converge Information and Omico Corp 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 Omico Corp are associated (or correlated) with Converge Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Converge Information has no effect on the direction of Omico Corp i.e., Omico Corp and Converge Information go up and down completely randomly.
Pair Corralation between Omico Corp and Converge Information
Assuming the 90 days trading horizon Omico Corp is expected to generate 5.34 times more return on investment than Converge Information. However, Omico Corp is 5.34 times more volatile than Converge Information Communications. It trades about 0.14 of its potential returns per unit of risk. Converge Information Communications is currently generating about 0.0 per unit of risk. If you would invest 13.00 in Omico Corp on November 29, 2024 and sell it today you would earn a total of 1.00 from holding Omico Corp or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Omico Corp vs. Converge Information Communica
Performance |
| Timeline |
| Omico Corp |
Risk-Adjusted Performance
OK
Weak | Strong |
| Converge Information |
Omico Corp and Converge Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omico Corp and Converge Information
The main advantage of trading using opposite Omico Corp and Converge Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omico Corp position performs unexpectedly, Converge Information 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 Converge Information will offset losses from the drop in Converge Information's long position.| Omico Corp vs. Century Pacific Food | Omico Corp vs. Semirara Mining Corp | Omico Corp vs. Philex Mining Corp | Omico Corp vs. Lepanto Consolidated Mining |
| Converge Information vs. Transpacific Broadband Group | Converge Information vs. Prime Media Holdings | Converge Information vs. Security Bank Corp | Converge Information vs. Top Frontier Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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