Correlation Between OtelloASA and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both OtelloASA and WAGNERS HOLDING 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 OtelloASA and WAGNERS HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otello ASA and WAGNERS HOLDING LTD, you can compare the effects of market volatilities on OtelloASA and WAGNERS HOLDING 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 OtelloASA with a short position of WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of OtelloASA and WAGNERS HOLDING.
Diversification Opportunities for OtelloASA and WAGNERS HOLDING
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OtelloASA and WAGNERS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Otello ASA and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD and OtelloASA 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 Otello ASA are associated (or correlated) with WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of OtelloASA i.e., OtelloASA and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between OtelloASA and WAGNERS HOLDING
Assuming the 90 days horizon Otello ASA is expected to under-perform the WAGNERS HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, Otello ASA is 1.69 times less risky than WAGNERS HOLDING. The stock trades about 0.0 of its potential returns per unit of risk. The WAGNERS HOLDING LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 48.00 in WAGNERS HOLDING LTD on September 26, 2024 and sell it today you would earn a total of 34.00 from holding WAGNERS HOLDING LTD or generate 70.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Otello ASA vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| Otello ASA |
| WAGNERS HOLDING LTD |
OtelloASA and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OtelloASA and WAGNERS HOLDING
The main advantage of trading using opposite OtelloASA and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OtelloASA position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| OtelloASA vs. Intuit Inc | OtelloASA vs. Palo Alto Networks | OtelloASA vs. Synopsys | OtelloASA vs. Cadence Design Systems |
| WAGNERS HOLDING vs. ALEFARM BREWING DK 05 | WAGNERS HOLDING vs. Chongqing Machinery Electric | WAGNERS HOLDING vs. Corporate Travel Management | WAGNERS HOLDING vs. CeoTronics 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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