Correlation Between Oxurion NV and Grupo Aval
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Grupo Aval 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 Grupo Aval into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Grupo Aval Acciones, you can compare the effects of market volatilities on Oxurion NV and Grupo Aval 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 Grupo Aval. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Grupo Aval.
Diversification Opportunities for Oxurion NV and Grupo Aval
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oxurion and Grupo is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Grupo Aval Acciones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aval Acciones 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 Grupo Aval. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aval Acciones has no effect on the direction of Oxurion NV i.e., Oxurion NV and Grupo Aval go up and down completely randomly.
Pair Corralation between Oxurion NV and Grupo Aval
Assuming the 90 days horizon Oxurion NV is expected to generate 4.39 times more return on investment than Grupo Aval. However, Oxurion NV is 4.39 times more volatile than Grupo Aval Acciones. It trades about 0.13 of its potential returns per unit of risk. Grupo Aval Acciones is currently generating about 0.17 per unit of risk. If you would invest 27.00 in Oxurion NV on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Oxurion NV or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Oxurion NV vs. Grupo Aval Acciones
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grupo Aval Acciones |
Oxurion NV and Grupo Aval Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Grupo Aval
The main advantage of trading using opposite Oxurion NV and Grupo Aval positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Grupo Aval 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 Grupo Aval will offset losses from the drop in Grupo Aval's long position.| Oxurion NV vs. KIMBALL ELECTRONICS | Oxurion NV vs. Sixt Leasing SE | Oxurion NV vs. SOFI TECHNOLOGIES | Oxurion NV vs. Nucletron Electronic Aktiengesellschaft |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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