Correlation Between OFX Group and CreditRiskMonitor
Can any of the company-specific risk be diversified away by investing in both OFX Group and CreditRiskMonitor 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 CreditRiskMonitor 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 CreditRiskMonitorCom, you can compare the effects of market volatilities on OFX Group and CreditRiskMonitor 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 CreditRiskMonitor. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and CreditRiskMonitor.
Diversification Opportunities for OFX Group and CreditRiskMonitor
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OFX and CreditRiskMonitor is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and CreditRiskMonitorCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CreditRiskMonitorCom 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 CreditRiskMonitor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CreditRiskMonitorCom has no effect on the direction of OFX Group i.e., OFX Group and CreditRiskMonitor go up and down completely randomly.
Pair Corralation between OFX Group and CreditRiskMonitor
If you would invest 260.00 in CreditRiskMonitorCom on August 25, 2024 and sell it today you would earn a total of 88.00 from holding CreditRiskMonitorCom or generate 33.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OFX Group Ltd vs. CreditRiskMonitorCom
Performance |
| Timeline |
| OFX Group |
| CreditRiskMonitorCom |
OFX Group and CreditRiskMonitor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and CreditRiskMonitor
The main advantage of trading using opposite OFX Group and CreditRiskMonitor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, CreditRiskMonitor 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 CreditRiskMonitor will offset losses from the drop in CreditRiskMonitor's long position.| OFX Group vs. Microbot Medical | OFX Group vs. FactSet Research Systems | OFX Group vs. Tandem Diabetes Care | OFX Group vs. Aquestive Therapeutics |
| CreditRiskMonitor vs. Arcane Crypto AB | CreditRiskMonitor vs. Cypherpunk Holdings | CreditRiskMonitor vs. Cathedra Bitcoin | CreditRiskMonitor vs. SPENN Technology AS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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