Correlation Between United Airlines and Oasmia Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both United Airlines and Oasmia Pharmaceutical 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 United Airlines and Oasmia Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Airlines Holdings and Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on United Airlines and Oasmia Pharmaceutical 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 United Airlines with a short position of Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Oasmia Pharmaceutical.
Diversification Opportunities for United Airlines and Oasmia Pharmaceutical
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Oasmia is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical and United Airlines 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 United Airlines Holdings are associated (or correlated) with Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of United Airlines i.e., United Airlines and Oasmia Pharmaceutical go up and down completely randomly.
Pair Corralation between United Airlines and Oasmia Pharmaceutical
Considering the 90-day investment horizon United Airlines Holdings is expected to generate 0.1 times more return on investment than Oasmia Pharmaceutical. However, United Airlines Holdings is 10.27 times less risky than Oasmia Pharmaceutical. It trades about 0.07 of its potential returns per unit of risk. Oasmia Pharmaceutical AB is currently generating about 0.0 per unit of risk. If you would invest 4,424 in United Airlines Holdings on September 2, 2024 and sell it today you would earn a total of 5,259 from holding United Airlines Holdings or generate 118.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
United Airlines Holdings vs. Oasmia Pharmaceutical AB
Performance |
| Timeline |
| United Airlines Holdings |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Airlines and Oasmia Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Oasmia Pharmaceutical
The main advantage of trading using opposite United Airlines and Oasmia Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Oasmia Pharmaceutical 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 Oasmia Pharmaceutical will offset losses from the drop in Oasmia Pharmaceutical's long position.| United Airlines vs. American Airlines Group | United Airlines vs. Southwest Airlines | United Airlines vs. JetBlue Airways Corp | United Airlines vs. Delta Air Lines |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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