Correlation Between OFX Group and EBullion
Can any of the company-specific risk be diversified away by investing in both OFX Group and EBullion 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 EBullion 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 EBullion, you can compare the effects of market volatilities on OFX Group and EBullion 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 EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and EBullion.
Diversification Opportunities for OFX Group and EBullion
Excellent diversification
The 3 months correlation between OFX and EBullion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion 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 EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of OFX Group i.e., OFX Group and EBullion go up and down completely randomly.
Pair Corralation between OFX Group and EBullion
If you would invest 0.12 in EBullion on August 25, 2024 and sell it today you would earn a total of 0.00 from holding EBullion or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
OFX Group Ltd vs. EBullion
Performance |
| Timeline |
| OFX Group |
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OFX Group and EBullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and EBullion
The main advantage of trading using opposite OFX Group and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion'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 |
| EBullion vs. SPENN Technology AS | EBullion vs. Arcane Crypto AB | EBullion vs. OFX Group Ltd | EBullion vs. Blockmate Ventures |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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