Correlation Between OFX Group and CryptoStar Corp
Can any of the company-specific risk be diversified away by investing in both OFX Group and CryptoStar Corp 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 CryptoStar Corp 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 CryptoStar Corp, you can compare the effects of market volatilities on OFX Group and CryptoStar Corp 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 CryptoStar Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and CryptoStar Corp.
Diversification Opportunities for OFX Group and CryptoStar Corp
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OFX and CryptoStar is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and CryptoStar Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryptoStar Corp 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 CryptoStar Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryptoStar Corp has no effect on the direction of OFX Group i.e., OFX Group and CryptoStar Corp go up and down completely randomly.
Pair Corralation between OFX Group and CryptoStar Corp
If you would invest 2.53 in CryptoStar Corp on August 30, 2024 and sell it today you would lose (0.18) from holding CryptoStar Corp or give up 7.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFX Group Ltd vs. CryptoStar Corp
Performance |
| Timeline |
| OFX Group |
| CryptoStar Corp |
OFX Group and CryptoStar Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and CryptoStar Corp
The main advantage of trading using opposite OFX Group and CryptoStar Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, CryptoStar Corp 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 CryptoStar Corp will offset losses from the drop in CryptoStar Corp's long position.| OFX Group vs. Apple Inc | OFX Group vs. Microsoft | OFX Group vs. Alphabet Inc Class C | OFX Group vs. Meta Platforms |
| CryptoStar Corp vs. SPENN Technology AS | CryptoStar Corp vs. OFX Group Ltd | CryptoStar Corp vs. Cypherpunk Holdings | CryptoStar Corp vs. Cathedra Bitcoin |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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