Correlation Between Oxurion NV and Fagron NV
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Fagron NV 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 Oxurion NV and Fagron NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Fagron NV, you can compare the effects of market volatilities on Oxurion NV and Fagron NV 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 Oxurion NV with a short position of Fagron NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Fagron NV.
Diversification Opportunities for Oxurion NV and Fagron NV
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxurion and Fagron is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Fagron NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fagron NV and Oxurion NV 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 Oxurion NV are associated (or correlated) with Fagron NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fagron NV has no effect on the direction of Oxurion NV i.e., Oxurion NV and Fagron NV go up and down completely randomly.
Pair Corralation between Oxurion NV and Fagron NV
Assuming the 90 days trading horizon Oxurion NV is expected to generate 84.02 times more return on investment than Fagron NV. However, Oxurion NV is 84.02 times more volatile than Fagron NV. It trades about 0.08 of its potential returns per unit of risk. Fagron NV is currently generating about 0.0 per unit of risk. If you would invest 100.00 in Oxurion NV on August 29, 2024 and sell it today you would lose (70.00) from holding Oxurion NV or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxurion NV vs. Fagron NV
Performance |
| Timeline |
| Oxurion NV |
| Fagron NV |
Oxurion NV and Fagron NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Fagron NV
The main advantage of trading using opposite Oxurion NV and Fagron NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Fagron NV 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 Fagron NV will offset losses from the drop in Fagron NV's long position.| Oxurion NV vs. Biocartis Group NV | Oxurion NV vs. Celyad SA | Oxurion NV vs. Argen X | Oxurion NV vs. Exmar NV |
| Fagron NV vs. Tessenderlo | Fagron NV vs. NV Bekaert SA | Fagron NV vs. Ontex Group NV | Fagron NV vs. Argen X |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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