Correlation Between Socket Mobile and Oasmia Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Socket Mobile and Oasmia Pharmaceutical 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 Socket Mobile and Oasmia Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Socket Mobile and Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on Socket Mobile and Oasmia Pharmaceutical 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 Socket Mobile with a short position of Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Socket Mobile and Oasmia Pharmaceutical.
Diversification Opportunities for Socket Mobile and Oasmia Pharmaceutical
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Socket and Oasmia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Socket Mobile and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical and Socket Mobile 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 Socket Mobile are associated (or correlated) with Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of Socket Mobile i.e., Socket Mobile and Oasmia Pharmaceutical go up and down completely randomly.
Pair Corralation between Socket Mobile and Oasmia Pharmaceutical
If you would invest 122.00 in Socket Mobile on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Socket Mobile or generate 32.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Socket Mobile vs. Oasmia Pharmaceutical AB
Performance |
| Timeline |
| Socket Mobile |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Socket Mobile and Oasmia Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Socket Mobile and Oasmia Pharmaceutical
The main advantage of trading using opposite Socket Mobile and Oasmia Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Socket Mobile position performs unexpectedly, Oasmia Pharmaceutical 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 Oasmia Pharmaceutical will offset losses from the drop in Oasmia Pharmaceutical's long position.| Socket Mobile vs. Cricut Inc | Socket Mobile vs. Nano Dimension | Socket Mobile vs. IONQ Inc | Socket Mobile vs. AGM Group Holdings |
| Oasmia Pharmaceutical vs. Artisan Partners Asset | Oasmia Pharmaceutical vs. Stepstone Group | Oasmia Pharmaceutical vs. National Vision Holdings | Oasmia Pharmaceutical vs. SEI Investments |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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