Correlation Between THERMO FISHER and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both THERMO FISHER and OAKTRSPECLENDNEW 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 THERMO FISHER and OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THERMO FISHER SCIEN and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on THERMO FISHER and OAKTRSPECLENDNEW 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 THERMO FISHER with a short position of OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of THERMO FISHER and OAKTRSPECLENDNEW.
Diversification Opportunities for THERMO FISHER and OAKTRSPECLENDNEW
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THERMO and OAKTRSPECLENDNEW is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding THERMO FISHER SCIEN and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW and THERMO FISHER 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 THERMO FISHER SCIEN are associated (or correlated) with OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of THERMO FISHER i.e., THERMO FISHER and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between THERMO FISHER and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon THERMO FISHER SCIEN is expected to under-perform the OAKTRSPECLENDNEW. In addition to that, THERMO FISHER is 1.19 times more volatile than OAKTRSPECLENDNEW. It trades about -0.05 of its total potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about 0.15 per unit of volatility. If you would invest 1,472 in OAKTRSPECLENDNEW on September 12, 2024 and sell it today you would earn a total of 63.00 from holding OAKTRSPECLENDNEW or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
THERMO FISHER SCIEN vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| THERMO FISHER SCIEN |
| OAKTRSPECLENDNEW |
THERMO FISHER and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THERMO FISHER and OAKTRSPECLENDNEW
The main advantage of trading using opposite THERMO FISHER and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THERMO FISHER position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.| THERMO FISHER vs. OAKTRSPECLENDNEW | THERMO FISHER vs. CHIBA BANK | THERMO FISHER vs. Webster Financial | THERMO FISHER vs. Tradegate AG Wertpapierhandelsbank |
| OAKTRSPECLENDNEW vs. Tradeweb Markets | OAKTRSPECLENDNEW vs. Fast Retailing Co | OAKTRSPECLENDNEW vs. The Trade Desk | OAKTRSPECLENDNEW vs. Carsales |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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