Correlation Between Oxbridge and Everest
Can any of the company-specific risk be diversified away by investing in both Oxbridge and Everest 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 Everest 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 Everest Group, you can compare the effects of market volatilities on Oxbridge and Everest 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 Everest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge and Everest.
Diversification Opportunities for Oxbridge and Everest
Very good diversification
The 3 months correlation between Oxbridge and Everest is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Re Holdings and Everest Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everest Group 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 Everest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everest Group has no effect on the direction of Oxbridge i.e., Oxbridge and Everest go up and down completely randomly.
Pair Corralation between Oxbridge and Everest
Assuming the 90 days horizon Oxbridge Re Holdings is expected to generate 13.29 times more return on investment than Everest. However, Oxbridge is 13.29 times more volatile than Everest Group. It trades about 0.24 of its potential returns per unit of risk. Everest Group is currently generating about 0.02 per unit of risk. If you would invest 18.00 in Oxbridge Re Holdings on November 1, 2024 and sell it today you would earn a total of 57.00 from holding Oxbridge Re Holdings or generate 316.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Oxbridge Re Holdings vs. Everest Group
Performance |
| Timeline |
| Oxbridge Re Holdings |
| Everest Group |
Oxbridge and Everest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge and Everest
The main advantage of trading using opposite Oxbridge and Everest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge position performs unexpectedly, Everest 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 Everest will offset losses from the drop in Everest's long position.The idea behind Oxbridge Re Holdings and Everest Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Everest vs. Hamilton Insurance Group, | Everest vs. Brookfield Wealth Solutions | Everest vs. Reinsurance Group of | Everest vs. Renaissancere Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |