Correlation Between OFX Group and ProConcept Marketing
Can any of the company-specific risk be diversified away by investing in both OFX Group and ProConcept Marketing 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 ProConcept Marketing 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 ProConcept Marketing Group, you can compare the effects of market volatilities on OFX Group and ProConcept Marketing 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 ProConcept Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and ProConcept Marketing.
Diversification Opportunities for OFX Group and ProConcept Marketing
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OFX and ProConcept is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and ProConcept Marketing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProConcept Marketing 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 ProConcept Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProConcept Marketing has no effect on the direction of OFX Group i.e., OFX Group and ProConcept Marketing go up and down completely randomly.
Pair Corralation between OFX Group and ProConcept Marketing
If you would invest 5.82 in ProConcept Marketing Group on October 7, 2024 and sell it today you would earn a total of 0.78 from holding ProConcept Marketing Group or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
OFX Group Ltd vs. ProConcept Marketing Group
Performance |
| Timeline |
| OFX Group |
| ProConcept Marketing |
OFX Group and ProConcept Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and ProConcept Marketing
The main advantage of trading using opposite OFX Group and ProConcept Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, ProConcept Marketing 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 ProConcept Marketing will offset losses from the drop in ProConcept Marketing's long position.| OFX Group vs. XCPCNL Business Services | OFX Group vs. International Consolidated Companies | OFX Group vs. Mills Music Trust | OFX Group vs. Citrine Global Corp |
| ProConcept Marketing vs. Cann American Corp | ProConcept Marketing vs. AAP Inc | ProConcept Marketing vs. Astra Veda | ProConcept Marketing vs. Link Reservations |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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