Correlation Between OFX Group and John Wiley

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both OFX Group and John Wiley 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 John Wiley 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 John Wiley Sons, you can compare the effects of market volatilities on OFX Group and John Wiley 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 John Wiley. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and John Wiley.

Diversification Opportunities for OFX Group and John Wiley

OFXJohnDiversified AwayOFXJohnDiversified Away100%
0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between OFX and John is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and John Wiley Sons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Wiley Sons 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 John Wiley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Wiley Sons has no effect on the direction of OFX Group i.e., OFX Group and John Wiley go up and down completely randomly.

Pair Corralation between OFX Group and John Wiley

Assuming the 90 days horizon OFX Group Ltd is expected to under-perform the John Wiley. In addition to that, OFX Group is 3.78 times more volatile than John Wiley Sons. It trades about -0.22 of its total potential returns per unit of risk. John Wiley Sons is currently generating about -0.51 per unit of volatility. If you would invest  5,290  in John Wiley Sons on September 27, 2024 and sell it today you would lose (830.00) from holding John Wiley Sons or give up 15.69% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy66.67%
ValuesDaily Returns

OFX Group Ltd  vs.  John Wiley Sons

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -100102030405060
JavaScript chart by amCharts 3.21.15OZFRY WLYB
       Timeline  
OFX Group 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in OFX Group Ltd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, OFX Group showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec4.555.566.57
John Wiley Sons 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days John Wiley Sons has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec424446485052

OFX Group and John Wiley Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-30.5-22.84-15.19-7.530.07.8115.6323.4431.25 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15OZFRY WLYB
       Returns  

Pair Trading with OFX Group and John Wiley

The main advantage of trading using opposite OFX Group and John Wiley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, John Wiley 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 John Wiley will offset losses from the drop in John Wiley's long position.
The idea behind OFX Group Ltd and John Wiley Sons pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Commodity Directory
Find actively traded commodities issued by global exchanges


 

Discover investing ideas

Utilize additional investing modules