Correlation Between Oasis Labs and STRAX
Can any of the company-specific risk be diversified away by investing in both Oasis Labs and STRAX 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 Oasis Labs and STRAX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Labs and STRAX, you can compare the effects of market volatilities on Oasis Labs and STRAX 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 Oasis Labs with a short position of STRAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Labs and STRAX.
Diversification Opportunities for Oasis Labs and STRAX
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oasis and STRAX is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Labs and STRAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAX and Oasis Labs 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 Oasis Labs are associated (or correlated) with STRAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAX has no effect on the direction of Oasis Labs i.e., Oasis Labs and STRAX go up and down completely randomly.
Pair Corralation between Oasis Labs and STRAX
Assuming the 90 days trading horizon Oasis Labs is expected to under-perform the STRAX. In addition to that, Oasis Labs is 1.7 times more volatile than STRAX. It trades about -0.35 of its total potential returns per unit of risk. STRAX is currently generating about -0.23 per unit of volatility. If you would invest 7.41 in STRAX on November 18, 2024 and sell it today you would lose (1.46) from holding STRAX or give up 19.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oasis Labs vs. STRAX
Performance |
| Timeline |
| Oasis Labs |
| STRAX |
Oasis Labs and STRAX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Labs and STRAX
The main advantage of trading using opposite Oasis Labs and STRAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Labs position performs unexpectedly, STRAX 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 STRAX will offset losses from the drop in STRAX's long position.| Oasis Labs vs. Oasis City | Oasis Labs vs. Staked Ether | Oasis Labs vs. Phala Network | Oasis Labs vs. EigenLayer |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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