Correlation Between Onex Corp and NanoXplore
Can any of the company-specific risk be diversified away by investing in both Onex Corp and NanoXplore 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 Onex Corp and NanoXplore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onex Corp and NanoXplore, you can compare the effects of market volatilities on Onex Corp and NanoXplore 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 Onex Corp with a short position of NanoXplore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onex Corp and NanoXplore.
Diversification Opportunities for Onex Corp and NanoXplore
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Onex and NanoXplore is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Onex Corp and NanoXplore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoXplore and Onex 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 Onex Corp are associated (or correlated) with NanoXplore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoXplore has no effect on the direction of Onex Corp i.e., Onex Corp and NanoXplore go up and down completely randomly.
Pair Corralation between Onex Corp and NanoXplore
Assuming the 90 days trading horizon Onex Corp is expected to generate 0.75 times more return on investment than NanoXplore. However, Onex Corp is 1.33 times less risky than NanoXplore. It trades about -0.02 of its potential returns per unit of risk. NanoXplore is currently generating about -0.05 per unit of risk. If you would invest 11,233 in Onex Corp on November 3, 2024 and sell it today you would lose (86.00) from holding Onex Corp or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Onex Corp vs. NanoXplore
Performance |
| Timeline |
| Onex Corp |
| NanoXplore |
Onex Corp and NanoXplore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onex Corp and NanoXplore
The main advantage of trading using opposite Onex Corp and NanoXplore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onex Corp position performs unexpectedly, NanoXplore 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 NanoXplore will offset losses from the drop in NanoXplore's long position.| Onex Corp vs. Intact Financial | Onex Corp vs. Open Text Corp | Onex Corp vs. Waste Connections | Onex Corp vs. Fairfax Financial Holdings |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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