Correlation Between Ssga International and Oshidori International
Can any of the company-specific risk be diversified away by investing in both Ssga International and Oshidori International 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 Ssga International and Oshidori International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga International Stock and Oshidori International Holdings, you can compare the effects of market volatilities on Ssga International and Oshidori International 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 Ssga International with a short position of Oshidori International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Oshidori International.
Diversification Opportunities for Ssga International and Oshidori International
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ssga and Oshidori is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock and Oshidori International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshidori International and Ssga International 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 Ssga International Stock are associated (or correlated) with Oshidori International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshidori International has no effect on the direction of Ssga International i.e., Ssga International and Oshidori International go up and down completely randomly.
Pair Corralation between Ssga International and Oshidori International
Assuming the 90 days horizon Ssga International Stock is expected to under-perform the Oshidori International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ssga International Stock is 295.37 times less risky than Oshidori International. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Oshidori International Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Oshidori International Holdings on August 30, 2024 and sell it today you would earn a total of 0.93 from holding Oshidori International Holdings or generate 1328.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga International Stock vs. Oshidori International Holding
Performance |
| Timeline |
| Ssga International Stock |
| Oshidori International |
Ssga International and Oshidori International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga International and Oshidori International
The main advantage of trading using opposite Ssga International and Oshidori International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International position performs unexpectedly, Oshidori International 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 Oshidori International will offset losses from the drop in Oshidori International's long position.| Ssga International vs. HUMANA INC | Ssga International vs. Aquagold International | Ssga International vs. Barloworld Ltd ADR | Ssga International vs. Morningstar Unconstrained Allocation |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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