Correlation Between OFX Group and Helix Applications
Can any of the company-specific risk be diversified away by investing in both OFX Group and Helix Applications 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 OFX Group and Helix Applications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFX Group Ltd and Helix Applications, you can compare the effects of market volatilities on OFX Group and Helix Applications 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 OFX Group with a short position of Helix Applications. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and Helix Applications.
Diversification Opportunities for OFX Group and Helix Applications
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OFX and Helix is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and Helix Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix Applications and OFX Group 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 OFX Group Ltd are associated (or correlated) with Helix Applications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix Applications has no effect on the direction of OFX Group i.e., OFX Group and Helix Applications go up and down completely randomly.
Pair Corralation between OFX Group and Helix Applications
If you would invest 7.20 in Helix Applications on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Helix Applications or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
OFX Group Ltd vs. Helix Applications
Performance |
| Timeline |
| OFX Group |
| Helix Applications |
OFX Group and Helix Applications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and Helix Applications
The main advantage of trading using opposite OFX Group and Helix Applications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, Helix Applications 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 Helix Applications will offset losses from the drop in Helix Applications' long position.| OFX Group vs. Copa Holdings SA | OFX Group vs. United Airlines Holdings | OFX Group vs. Delta Air Lines | OFX Group vs. SkyWest |
| Helix Applications vs. SPENN Technology AS | Helix Applications vs. OFX Group Ltd | Helix Applications vs. HUMANA INC | Helix Applications vs. Barloworld Ltd ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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