Correlation Between Oxbridge and Schultze Special
Can any of the company-specific risk be diversified away by investing in both Oxbridge and Schultze Special 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 Schultze Special 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 Schultze Special Purpose, you can compare the effects of market volatilities on Oxbridge and Schultze Special 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 Schultze Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge and Schultze Special.
Diversification Opportunities for Oxbridge and Schultze Special
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oxbridge and Schultze is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Re Holdings and Schultze Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schultze Special Purpose 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 Schultze Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schultze Special Purpose has no effect on the direction of Oxbridge i.e., Oxbridge and Schultze Special go up and down completely randomly.
Pair Corralation between Oxbridge and Schultze Special
Assuming the 90 days horizon Oxbridge is expected to generate 1.65 times less return on investment than Schultze Special. But when comparing it to its historical volatility, Oxbridge Re Holdings is 1.0 times less risky than Schultze Special. It trades about 0.13 of its potential returns per unit of risk. Schultze Special Purpose is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.10 in Schultze Special Purpose on August 30, 2024 and sell it today you would earn a total of 4.79 from holding Schultze Special Purpose or generate 435.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 14.78% |
| Values | Daily Returns |
Oxbridge Re Holdings vs. Schultze Special Purpose
Performance |
| Timeline |
| Oxbridge Re Holdings |
| Schultze Special Purpose |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oxbridge and Schultze Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge and Schultze Special
The main advantage of trading using opposite Oxbridge and Schultze Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge position performs unexpectedly, Schultze Special 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 Schultze Special will offset losses from the drop in Schultze Special's long position.| Oxbridge vs. Maiden Holdings | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. RenaissanceRe Holdings | Oxbridge 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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