Correlation Between Oxus Acquisition and Oxus Acquisition
Can any of the company-specific risk be diversified away by investing in both Oxus Acquisition and Oxus Acquisition 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 Oxus Acquisition and Oxus Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxus Acquisition Corp and Oxus Acquisition Corp, you can compare the effects of market volatilities on Oxus Acquisition and Oxus Acquisition 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 Oxus Acquisition with a short position of Oxus Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxus Acquisition and Oxus Acquisition.
Diversification Opportunities for Oxus Acquisition and Oxus Acquisition
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxus and Oxus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oxus Acquisition Corp and Oxus Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxus Acquisition Corp and Oxus Acquisition 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 Oxus Acquisition Corp are associated (or correlated) with Oxus Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxus Acquisition Corp has no effect on the direction of Oxus Acquisition i.e., Oxus Acquisition and Oxus Acquisition go up and down completely randomly.
Pair Corralation between Oxus Acquisition and Oxus Acquisition
Assuming the 90 days horizon Oxus Acquisition Corp is expected to generate 118.69 times more return on investment than Oxus Acquisition. However, Oxus Acquisition is 118.69 times more volatile than Oxus Acquisition Corp. It trades about 0.13 of its potential returns per unit of risk. Oxus Acquisition Corp is currently generating about 0.21 per unit of risk. If you would invest 3.75 in Oxus Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 5.25 from holding Oxus Acquisition Corp or generate 140.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.31% |
| Values | Daily Returns |
Oxus Acquisition Corp vs. Oxus Acquisition Corp
Performance |
| Timeline |
| Oxus Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oxus Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oxus Acquisition and Oxus Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxus Acquisition and Oxus Acquisition
The main advantage of trading using opposite Oxus Acquisition and Oxus Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxus Acquisition position performs unexpectedly, Oxus Acquisition 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 Oxus Acquisition will offset losses from the drop in Oxus Acquisition's long position.The idea behind Oxus Acquisition Corp and Oxus Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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