Correlation Between OneSpaWorld Holdings and Marine Products
Can any of the company-specific risk be diversified away by investing in both OneSpaWorld Holdings and Marine Products 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 Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSpaWorld Holdings and Marine Products, you can compare the effects of market volatilities on OneSpaWorld Holdings and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpaWorld Holdings and Marine Products.
Diversification Opportunities for OneSpaWorld Holdings and Marine Products
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OneSpaWorld and Marine is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding OneSpaWorld Holdings and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of OneSpaWorld Holdings i.e., OneSpaWorld Holdings and Marine Products go up and down completely randomly.
Pair Corralation between OneSpaWorld Holdings and Marine Products
Considering the 90-day investment horizon OneSpaWorld Holdings is expected to generate 1.13 times more return on investment than Marine Products. However, OneSpaWorld Holdings is 1.13 times more volatile than Marine Products. It trades about 0.12 of its potential returns per unit of risk. Marine Products is currently generating about -0.05 per unit of risk. If you would invest 1,874 in OneSpaWorld Holdings on September 20, 2024 and sell it today you would earn a total of 83.00 from holding OneSpaWorld Holdings or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSpaWorld Holdings vs. Marine Products
Performance |
| Timeline |
| OneSpaWorld Holdings |
| Marine Products |
OneSpaWorld Holdings and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSpaWorld Holdings and Marine Products
The main advantage of trading using opposite OneSpaWorld Holdings and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpaWorld Holdings position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| OneSpaWorld Holdings vs. Hyatt Hotels | OneSpaWorld Holdings vs. Biglari Holdings | OneSpaWorld Holdings vs. Smart Share Global | OneSpaWorld Holdings vs. Sweetgreen |
| Marine Products vs. Clarus Corp | Marine Products vs. OneSpaWorld Holdings | Marine Products vs. Leatt Corp | Marine Products vs. Six Flags Entertainment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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