Correlation Between Oxbridge and Trump Media
Can any of the company-specific risk be diversified away by investing in both Oxbridge and Trump Media 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 Oxbridge and Trump Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxbridge Re Holdings and Trump Media Technology, you can compare the effects of market volatilities on Oxbridge and Trump Media 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 Oxbridge with a short position of Trump Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge and Trump Media.
Diversification Opportunities for Oxbridge and Trump Media
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oxbridge and Trump is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Re Holdings and Trump Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trump Media Technology and Oxbridge 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 Oxbridge Re Holdings are associated (or correlated) with Trump Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trump Media Technology has no effect on the direction of Oxbridge i.e., Oxbridge and Trump Media go up and down completely randomly.
Pair Corralation between Oxbridge and Trump Media
Given the investment horizon of 90 days Oxbridge Re Holdings is expected to generate 1.05 times more return on investment than Trump Media. However, Oxbridge is 1.05 times more volatile than Trump Media Technology. It trades about 0.13 of its potential returns per unit of risk. Trump Media Technology is currently generating about 0.04 per unit of risk. If you would invest 382.00 in Oxbridge Re Holdings on October 23, 2024 and sell it today you would earn a total of 50.50 from holding Oxbridge Re Holdings or generate 13.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxbridge Re Holdings vs. Trump Media Technology
Performance |
| Timeline |
| Oxbridge Re Holdings |
| Trump Media Technology |
Oxbridge and Trump Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge and Trump Media
The main advantage of trading using opposite Oxbridge and Trump Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge position performs unexpectedly, Trump Media 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 Trump Media will offset losses from the drop in Trump Media's long position.| Oxbridge vs. Muenchener Rueckver Ges | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. Maiden Holdings | Oxbridge vs. Swiss Re |
| Trump Media vs. Romana Food Brands | Trump Media vs. Olympic Steel | Trump Media vs. The Gap, | Trump Media vs. Sysco |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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