Correlation Between Oxford Technology and Marks
Can any of the company-specific risk be diversified away by investing in both Oxford Technology and Marks 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 Oxford Technology and Marks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Technology 2 and Marks and Spencer, you can compare the effects of market volatilities on Oxford Technology and Marks 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 Oxford Technology with a short position of Marks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Technology and Marks.
Diversification Opportunities for Oxford Technology and Marks
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and Marks is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Technology 2 and Marks and Spencer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks and Spencer and Oxford Technology 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 Oxford Technology 2 are associated (or correlated) with Marks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks and Spencer has no effect on the direction of Oxford Technology i.e., Oxford Technology and Marks go up and down completely randomly.
Pair Corralation between Oxford Technology and Marks
If you would invest 37,821 in Marks and Spencer on September 25, 2024 and sell it today you would earn a total of 49.00 from holding Marks and Spencer or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oxford Technology 2 vs. Marks and Spencer
Performance |
| Timeline |
| Oxford Technology |
| Marks and Spencer |
Oxford Technology and Marks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Technology and Marks
The main advantage of trading using opposite Oxford Technology and Marks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Technology position performs unexpectedly, Marks 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 Marks will offset losses from the drop in Marks' long position.| Oxford Technology vs. Uniper SE | Oxford Technology vs. Mulberry Group PLC | Oxford Technology vs. London Security Plc | Oxford Technology vs. Triad Group PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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