Correlation Between Oxbridge and National Energy
Can any of the company-specific risk be diversified away by investing in both Oxbridge and National Energy 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 National Energy 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 National Energy Services, you can compare the effects of market volatilities on Oxbridge and National Energy 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 National Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge and National Energy.
Diversification Opportunities for Oxbridge and National Energy
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oxbridge and National is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Re Holdings and National Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Energy Services 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 National Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Energy Services has no effect on the direction of Oxbridge i.e., Oxbridge and National Energy go up and down completely randomly.
Pair Corralation between Oxbridge and National Energy
Assuming the 90 days horizon Oxbridge Re Holdings is expected to generate 23.09 times more return on investment than National Energy. However, Oxbridge is 23.09 times more volatile than National Energy Services. It trades about 0.18 of its potential returns per unit of risk. National Energy Services is currently generating about -0.03 per unit of risk. If you would invest 3.00 in Oxbridge Re Holdings on August 24, 2024 and sell it today you would earn a total of 17.00 from holding Oxbridge Re Holdings or generate 566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.68% |
| Values | Daily Returns |
Oxbridge Re Holdings vs. National Energy Services
Performance |
| Timeline |
| Oxbridge Re Holdings |
| National Energy Services |
Oxbridge and National Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge and National Energy
The main advantage of trading using opposite Oxbridge and National Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge position performs unexpectedly, National Energy 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 National Energy will offset losses from the drop in National Energy's long position.| Oxbridge vs. Greenlight Capital Re | Oxbridge vs. RenaissanceRe Holdings | Oxbridge vs. Renaissancere Holdings | Oxbridge vs. Siriuspoint |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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