Correlation Between Woodbrook Group and OFX Group
Can any of the company-specific risk be diversified away by investing in both Woodbrook Group and OFX Group 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 Woodbrook Group and OFX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woodbrook Group Holdings and OFX Group Ltd, you can compare the effects of market volatilities on Woodbrook Group and OFX Group 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 Woodbrook Group with a short position of OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woodbrook Group and OFX Group.
Diversification Opportunities for Woodbrook Group and OFX Group
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Woodbrook and OFX is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Woodbrook Group Holdings and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group and Woodbrook Group 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 Woodbrook Group Holdings are associated (or correlated) with OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Woodbrook Group i.e., Woodbrook Group and OFX Group go up and down completely randomly.
Pair Corralation between Woodbrook Group and OFX Group
If you would invest 5.12 in Woodbrook Group Holdings on November 28, 2024 and sell it today you would earn a total of 0.88 from holding Woodbrook Group Holdings or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Woodbrook Group Holdings vs. OFX Group Ltd
Performance |
| Timeline |
| Woodbrook Group Holdings |
| OFX Group |
Woodbrook Group and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woodbrook Group and OFX Group
The main advantage of trading using opposite Woodbrook Group and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woodbrook Group position performs unexpectedly, OFX Group 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 OFX Group will offset losses from the drop in OFX Group's long position.| Woodbrook Group vs. Cal Bay Intl | Woodbrook Group vs. First BITCoin Capital | Woodbrook Group vs. Sysorex | Woodbrook Group vs. Blockmate Ventures |
| OFX Group vs. Juniata Valley Financial | OFX Group vs. NRG Energy | OFX Group vs. Catalyst Bancorp | OFX Group vs. The Hanover Insurance |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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