Correlation Between Oxurion NV and Lamar Advertising
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Lamar Advertising 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 Lamar Advertising into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Lamar Advertising, you can compare the effects of market volatilities on Oxurion NV and Lamar Advertising 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 Lamar Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Lamar Advertising.
Diversification Opportunities for Oxurion NV and Lamar Advertising
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxurion and Lamar is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Lamar Advertising in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lamar Advertising 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 Lamar Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lamar Advertising has no effect on the direction of Oxurion NV i.e., Oxurion NV and Lamar Advertising go up and down completely randomly.
Pair Corralation between Oxurion NV and Lamar Advertising
Assuming the 90 days horizon Oxurion NV is expected to generate 27.95 times more return on investment than Lamar Advertising. However, Oxurion NV is 27.95 times more volatile than Lamar Advertising. It trades about 0.04 of its potential returns per unit of risk. Lamar Advertising is currently generating about 0.09 per unit of risk. If you would invest 600.00 in Oxurion NV on August 31, 2024 and sell it today you would lose (572.00) from holding Oxurion NV or give up 95.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Oxurion NV vs. Lamar Advertising
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lamar Advertising |
Oxurion NV and Lamar Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Lamar Advertising
The main advantage of trading using opposite Oxurion NV and Lamar Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Lamar Advertising 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 Lamar Advertising will offset losses from the drop in Lamar Advertising's long position.| Oxurion NV vs. Molson Coors Beverage | Oxurion NV vs. RYU Apparel | Oxurion NV vs. MOLSON RS BEVERAGE | Oxurion NV vs. INTERCONT HOTELS |
| Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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