Correlation Between Oxbridge and H M
Can any of the company-specific risk be diversified away by investing in both Oxbridge and H M 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 H M 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 H M Hennes, you can compare the effects of market volatilities on Oxbridge and H M 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 H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge and H M.
Diversification Opportunities for Oxbridge and H M
Excellent diversification
The 3 months correlation between Oxbridge and HMRZF is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Re Holdings and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes 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 H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of Oxbridge i.e., Oxbridge and H M go up and down completely randomly.
Pair Corralation between Oxbridge and H M
Given the investment horizon of 90 days Oxbridge Re Holdings is expected to generate 3.06 times more return on investment than H M. However, Oxbridge is 3.06 times more volatile than H M Hennes. It trades about 0.13 of its potential returns per unit of risk. H M Hennes is currently generating about -0.2 per unit of risk. If you would invest 270.00 in Oxbridge Re Holdings on October 24, 2024 and sell it today you would earn a total of 166.00 from holding Oxbridge Re Holdings or generate 61.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxbridge Re Holdings vs. H M Hennes
Performance |
| Timeline |
| Oxbridge Re Holdings |
| H M Hennes |
Oxbridge and H M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge and H M
The main advantage of trading using opposite Oxbridge and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's long position.| Oxbridge vs. Muenchener Rueckver Ges | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. Maiden Holdings | Oxbridge vs. Swiss Re |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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