Correlation Between Oceantech Acquisitions and L Catterton
Can any of the company-specific risk be diversified away by investing in both Oceantech Acquisitions and L Catterton 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 Oceantech Acquisitions and L Catterton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oceantech Acquisitions I and L Catterton Asia, you can compare the effects of market volatilities on Oceantech Acquisitions and L Catterton 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 Oceantech Acquisitions with a short position of L Catterton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oceantech Acquisitions and L Catterton.
Diversification Opportunities for Oceantech Acquisitions and L Catterton
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oceantech and LCAA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Oceantech Acquisitions I and L Catterton Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Catterton Asia and Oceantech Acquisitions 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 Oceantech Acquisitions I are associated (or correlated) with L Catterton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Catterton Asia has no effect on the direction of Oceantech Acquisitions i.e., Oceantech Acquisitions and L Catterton go up and down completely randomly.
Pair Corralation between Oceantech Acquisitions and L Catterton
Assuming the 90 days horizon Oceantech Acquisitions is expected to generate 1.16 times less return on investment than L Catterton. In addition to that, Oceantech Acquisitions is 2.66 times more volatile than L Catterton Asia. It trades about 0.04 of its total potential returns per unit of risk. L Catterton Asia is currently generating about 0.14 per unit of volatility. If you would invest 1,004 in L Catterton Asia on September 3, 2024 and sell it today you would earn a total of 46.00 from holding L Catterton Asia or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.35% |
| Values | Daily Returns |
Oceantech Acquisitions I vs. L Catterton Asia
Performance |
| Timeline |
| Oceantech Acquisitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| L Catterton Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oceantech Acquisitions and L Catterton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oceantech Acquisitions and L Catterton
The main advantage of trading using opposite Oceantech Acquisitions and L Catterton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oceantech Acquisitions position performs unexpectedly, L Catterton 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 L Catterton will offset losses from the drop in L Catterton's long position.| Oceantech Acquisitions vs. Keurig Dr Pepper | Oceantech Acquisitions vs. Olympic Steel | Oceantech Acquisitions vs. Asbury Automotive Group | Oceantech Acquisitions vs. Simon Property Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |