Correlation Between Afentra PLC and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both Afentra PLC and OAKTRSPECLENDNEW 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 Afentra PLC and OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afentra PLC and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on Afentra PLC and OAKTRSPECLENDNEW 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 Afentra PLC with a short position of OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afentra PLC and OAKTRSPECLENDNEW.
Diversification Opportunities for Afentra PLC and OAKTRSPECLENDNEW
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Afentra and OAKTRSPECLENDNEW is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Afentra PLC and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW and Afentra PLC 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 Afentra PLC are associated (or correlated) with OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of Afentra PLC i.e., Afentra PLC and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between Afentra PLC and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon Afentra PLC is expected to generate 2.74 times more return on investment than OAKTRSPECLENDNEW. However, Afentra PLC is 2.74 times more volatile than OAKTRSPECLENDNEW. It trades about 0.05 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about 0.02 per unit of risk. If you would invest 26.00 in Afentra PLC on December 1, 2024 and sell it today you would earn a total of 25.00 from holding Afentra PLC or generate 96.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Afentra PLC vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| Afentra PLC |
| OAKTRSPECLENDNEW |
Afentra PLC and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afentra PLC and OAKTRSPECLENDNEW
The main advantage of trading using opposite Afentra PLC and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afentra PLC position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.| Afentra PLC vs. AGF Management Limited | Afentra PLC vs. Cognizant Technology Solutions | Afentra PLC vs. ASM Pacific Technology | Afentra PLC vs. Jupiter Fund Management |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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