Correlation Between One Software and NewMed Energy
Can any of the company-specific risk be diversified away by investing in both One Software and NewMed Energy 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 One Software and NewMed Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Software Technologies and NewMed Energy , you can compare the effects of market volatilities on One Software and NewMed Energy 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 One Software with a short position of NewMed Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Software and NewMed Energy.
Diversification Opportunities for One Software and NewMed Energy
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and NewMed is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding One Software Technologies and NewMed Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewMed Energy and One Software 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 One Software Technologies are associated (or correlated) with NewMed Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewMed Energy has no effect on the direction of One Software i.e., One Software and NewMed Energy go up and down completely randomly.
Pair Corralation between One Software and NewMed Energy
Assuming the 90 days trading horizon One Software is expected to generate 1.15 times less return on investment than NewMed Energy. In addition to that, One Software is 1.31 times more volatile than NewMed Energy . It trades about 0.28 of its total potential returns per unit of risk. NewMed Energy is currently generating about 0.42 per unit of volatility. If you would invest 122,200 in NewMed Energy on November 27, 2024 and sell it today you would earn a total of 15,000 from holding NewMed Energy or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Software Technologies vs. NewMed Energy
Performance |
| Timeline |
| One Software Technologies |
| NewMed Energy |
One Software and NewMed Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Software and NewMed Energy
The main advantage of trading using opposite One Software and NewMed Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Software position performs unexpectedly, NewMed Energy 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 NewMed Energy will offset losses from the drop in NewMed Energy's long position.| One Software vs. Hilan | One Software vs. Danel | One Software vs. Matrix | One Software vs. Fattal 1998 Holdings |
| NewMed Energy vs. TAT Technologies | NewMed Energy vs. Sure Tech Investments LP | NewMed Energy vs. Unic tech Limited Partnership | NewMed Energy vs. Ormat Technologies |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |