Correlation Between Oxurion NV and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Haier Smart 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 Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Haier Smart Home, you can compare the effects of market volatilities on Oxurion NV and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Haier Smart.
Diversification Opportunities for Oxurion NV and Haier Smart
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oxurion and Haier is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Oxurion NV i.e., Oxurion NV and Haier Smart go up and down completely randomly.
Pair Corralation between Oxurion NV and Haier Smart
Assuming the 90 days horizon Oxurion NV is expected to generate 30.23 times more return on investment than Haier Smart. However, Oxurion NV is 30.23 times more volatile than Haier Smart Home. It trades about 0.05 of its potential returns per unit of risk. Haier Smart Home is currently generating about 0.13 per unit of risk. If you would invest 100.00 in Oxurion NV on August 28, 2024 and sell it today you would lose (72.00) from holding Oxurion NV or give up 72.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.42% |
| Values | Daily Returns |
Oxurion NV vs. Haier Smart Home
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Haier Smart Home |
Oxurion NV and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Haier Smart
The main advantage of trading using opposite Oxurion NV and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Oxurion NV vs. TITANIUM TRANSPORTGROUP | Oxurion NV vs. Broadcom | Oxurion NV vs. Nishi Nippon Railroad Co | Oxurion NV vs. COPLAND ROAD CAPITAL |
| Haier Smart vs. Commercial Vehicle Group | Haier Smart vs. CARSALESCOM | Haier Smart vs. DELTA AIR LINES | Haier Smart vs. ALTAIR RES INC |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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