Correlation Between Oshidori International and New York
Can any of the company-specific risk be diversified away by investing in both Oshidori International and New York 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 Oshidori International and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshidori International Holdings and New York Mortgage, you can compare the effects of market volatilities on Oshidori International and New York 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 Oshidori International with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and New York.
Diversification Opportunities for Oshidori International and New York
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oshidori and New is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage and Oshidori International 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 Oshidori International Holdings are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of Oshidori International i.e., Oshidori International and New York go up and down completely randomly.
Pair Corralation between Oshidori International and New York
Assuming the 90 days horizon Oshidori International Holdings is expected to generate 43.82 times more return on investment than New York. However, Oshidori International is 43.82 times more volatile than New York Mortgage. It trades about 0.05 of its potential returns per unit of risk. New York Mortgage is currently generating about 0.08 per unit of risk. If you would invest 0.06 in Oshidori International Holdings on August 30, 2024 and sell it today you would earn a total of 0.94 from holding Oshidori International Holdings or generate 1566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshidori International Holding vs. New York Mortgage
Performance |
| Timeline |
| Oshidori International |
| New York Mortgage |
Oshidori International and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshidori International and New York
The main advantage of trading using opposite Oshidori International and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshidori International position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Oshidori International vs. SPENN Technology AS | Oshidori International vs. OFX Group Ltd | Oshidori International vs. Cypherpunk Holdings | Oshidori International vs. Cathedra Bitcoin |
| New York vs. AG Mortgage Investment | New York vs. AG Mortgage Investment | New York vs. MFA Financial | New York vs. Invesco Mortgage Capital |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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