Correlation Between Oxurion NV and Montea CVA
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Montea CVA 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 Montea CVA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Montea CVA, you can compare the effects of market volatilities on Oxurion NV and Montea CVA 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 Montea CVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Montea CVA.
Diversification Opportunities for Oxurion NV and Montea CVA
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oxurion and Montea is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Montea CVA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montea CVA 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 Montea CVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montea CVA has no effect on the direction of Oxurion NV i.e., Oxurion NV and Montea CVA go up and down completely randomly.
Pair Corralation between Oxurion NV and Montea CVA
Assuming the 90 days trading horizon Oxurion NV is expected to generate 69.2 times more return on investment than Montea CVA. However, Oxurion NV is 69.2 times more volatile than Montea CVA. It trades about 0.08 of its potential returns per unit of risk. Montea CVA is currently generating about -0.12 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxurion NV vs. Montea CVA
Performance |
| Timeline |
| Oxurion NV |
| Montea CVA |
Oxurion NV and Montea CVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Montea CVA
The main advantage of trading using opposite Oxurion NV and Montea CVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Montea CVA 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 Montea CVA will offset losses from the drop in Montea CVA's long position.| Oxurion NV vs. Biocartis Group NV | Oxurion NV vs. Celyad SA | Oxurion NV vs. Argen X | Oxurion NV vs. Exmar NV |
| Montea CVA vs. Aedifica | Montea CVA vs. Cofinimmo SA | Montea CVA vs. VGP NV | Montea CVA vs. Sofina Socit Anonyme |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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