Correlation Between Oxurion NV and IND+COMMBK CHINA
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and IND+COMMBK CHINA 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 IND+COMMBK CHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and INDCOMMBK CHINA ADR20, you can compare the effects of market volatilities on Oxurion NV and IND+COMMBK CHINA 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 IND+COMMBK CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and IND+COMMBK CHINA.
Diversification Opportunities for Oxurion NV and IND+COMMBK CHINA
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxurion and IND+COMMBK is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and INDCOMMBK CHINA ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDCOMMBK CHINA ADR20 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 IND+COMMBK CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDCOMMBK CHINA ADR20 has no effect on the direction of Oxurion NV i.e., Oxurion NV and IND+COMMBK CHINA go up and down completely randomly.
Pair Corralation between Oxurion NV and IND+COMMBK CHINA
Assuming the 90 days horizon Oxurion NV is expected to generate 17.55 times more return on investment than IND+COMMBK CHINA. However, Oxurion NV is 17.55 times more volatile than INDCOMMBK CHINA ADR20. It trades about 0.06 of its potential returns per unit of risk. INDCOMMBK CHINA ADR20 is currently generating about 0.04 per unit of risk. If you would invest 17,400 in Oxurion NV on August 28, 2024 and sell it today you would lose (17,372) from holding Oxurion NV or give up 99.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Oxurion NV vs. INDCOMMBK CHINA ADR20
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| INDCOMMBK CHINA ADR20 |
Oxurion NV and IND+COMMBK CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and IND+COMMBK CHINA
The main advantage of trading using opposite Oxurion NV and IND+COMMBK CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, IND+COMMBK CHINA 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 IND+COMMBK CHINA will offset losses from the drop in IND+COMMBK CHINA'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 |
| IND+COMMBK CHINA vs. Data3 Limited | IND+COMMBK CHINA vs. Datang International Power | IND+COMMBK CHINA vs. Information Services International Dentsu | IND+COMMBK CHINA vs. AM EAGLE OUTFITTERS |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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