Correlation Between OneSpaWorld Holdings and Malibu Boats
Can any of the company-specific risk be diversified away by investing in both OneSpaWorld Holdings and Malibu Boats 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 OneSpaWorld Holdings and Malibu Boats into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSpaWorld Holdings and Malibu Boats, you can compare the effects of market volatilities on OneSpaWorld Holdings and Malibu Boats 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 OneSpaWorld Holdings with a short position of Malibu Boats. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpaWorld Holdings and Malibu Boats.
Diversification Opportunities for OneSpaWorld Holdings and Malibu Boats
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OneSpaWorld and Malibu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding OneSpaWorld Holdings and Malibu Boats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malibu Boats and OneSpaWorld Holdings 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 OneSpaWorld Holdings are associated (or correlated) with Malibu Boats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malibu Boats has no effect on the direction of OneSpaWorld Holdings i.e., OneSpaWorld Holdings and Malibu Boats go up and down completely randomly.
Pair Corralation between OneSpaWorld Holdings and Malibu Boats
Considering the 90-day investment horizon OneSpaWorld Holdings is expected to generate 0.69 times more return on investment than Malibu Boats. However, OneSpaWorld Holdings is 1.45 times less risky than Malibu Boats. It trades about 0.11 of its potential returns per unit of risk. Malibu Boats is currently generating about -0.24 per unit of risk. If you would invest 1,939 in OneSpaWorld Holdings on September 23, 2024 and sell it today you would earn a total of 79.00 from holding OneSpaWorld Holdings or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSpaWorld Holdings vs. Malibu Boats
Performance |
| Timeline |
| OneSpaWorld Holdings |
| Malibu Boats |
OneSpaWorld Holdings and Malibu Boats Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSpaWorld Holdings and Malibu Boats
The main advantage of trading using opposite OneSpaWorld Holdings and Malibu Boats positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpaWorld Holdings position performs unexpectedly, Malibu Boats 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 Malibu Boats will offset losses from the drop in Malibu Boats' long position.| OneSpaWorld Holdings vs. Escalade Incorporated | OneSpaWorld Holdings vs. Johnson Outdoors | OneSpaWorld Holdings vs. Clarus Corp | OneSpaWorld Holdings vs. Six Flags Entertainment |
| Malibu Boats vs. Polaris Industries | Malibu Boats vs. MCBC Holdings | Malibu Boats vs. LCI Industries | Malibu Boats vs. Thor Industries |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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