Correlation Between Oxurion NV and Hexagon Purus
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Hexagon Purus 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 Oxurion NV and Hexagon Purus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Hexagon Purus AS, you can compare the effects of market volatilities on Oxurion NV and Hexagon Purus 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 Oxurion NV with a short position of Hexagon Purus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Hexagon Purus.
Diversification Opportunities for Oxurion NV and Hexagon Purus
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oxurion and Hexagon is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Hexagon Purus AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon Purus AS and Oxurion NV 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 Oxurion NV are associated (or correlated) with Hexagon Purus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon Purus AS has no effect on the direction of Oxurion NV i.e., Oxurion NV and Hexagon Purus go up and down completely randomly.
Pair Corralation between Oxurion NV and Hexagon Purus
Assuming the 90 days horizon Oxurion NV is expected to generate 1.67 times more return on investment than Hexagon Purus. However, Oxurion NV is 1.67 times more volatile than Hexagon Purus AS. It trades about 0.03 of its potential returns per unit of risk. Hexagon Purus AS is currently generating about -0.29 per unit of risk. If you would invest 28.00 in Oxurion NV on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Oxurion NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 17.39% |
| Values | Daily Returns |
Oxurion NV vs. Hexagon Purus AS
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hexagon Purus AS |
Oxurion NV and Hexagon Purus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Hexagon Purus
The main advantage of trading using opposite Oxurion NV and Hexagon Purus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Hexagon Purus 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 Hexagon Purus will offset losses from the drop in Hexagon Purus' long position.| Oxurion NV vs. GLG LIFE TECH | Oxurion NV vs. AAC TECHNOLOGHLDGADR | Oxurion NV vs. ACCSYS TECHPLC EO | Oxurion NV vs. Perseus Mining Limited |
| Hexagon Purus vs. AIR PRODCHEMICALS | Hexagon Purus vs. Federal Agricultural Mortgage | Hexagon Purus vs. Daito Trust Construction | Hexagon Purus vs. Mitsui Chemicals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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