Correlation Between Oxurion NV and HUNTSMAN
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and HUNTSMAN 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 HUNTSMAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and HUNTSMAN, you can compare the effects of market volatilities on Oxurion NV and HUNTSMAN 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 HUNTSMAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and HUNTSMAN.
Diversification Opportunities for Oxurion NV and HUNTSMAN
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxurion and HUNTSMAN is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and HUNTSMAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUNTSMAN 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 HUNTSMAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUNTSMAN has no effect on the direction of Oxurion NV i.e., Oxurion NV and HUNTSMAN go up and down completely randomly.
Pair Corralation between Oxurion NV and HUNTSMAN
Assuming the 90 days horizon Oxurion NV is expected to generate 13.11 times more return on investment than HUNTSMAN. However, Oxurion NV is 13.11 times more volatile than HUNTSMAN. It trades about 0.06 of its potential returns per unit of risk. HUNTSMAN is currently generating about 0.04 per unit of risk. If you would invest 900.00 in Oxurion NV on August 27, 2024 and sell it today you would lose (872.00) from holding Oxurion NV or give up 96.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.01% |
| Values | Daily Returns |
Oxurion NV vs. HUNTSMAN
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HUNTSMAN |
Oxurion NV and HUNTSMAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and HUNTSMAN
The main advantage of trading using opposite Oxurion NV and HUNTSMAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, HUNTSMAN 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 HUNTSMAN will offset losses from the drop in HUNTSMAN's long position.| Oxurion NV vs. CSL Limited | Oxurion NV vs. Superior Plus Corp | Oxurion NV vs. NMI Holdings | Oxurion NV vs. Origin Agritech |
| HUNTSMAN vs. SIEM OFFSHORE NEW | HUNTSMAN vs. EIDESVIK OFFSHORE NK | HUNTSMAN vs. MAGNUM MINING EXP | HUNTSMAN vs. MCEWEN MINING 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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