Correlation Between Oscotec and Vieworks

Can any of the company-specific risk be diversified away by investing in both Oscotec and Vieworks 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 Oscotec and Vieworks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oscotec and Vieworks Co, you can compare the effects of market volatilities on Oscotec and Vieworks 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 Oscotec with a short position of Vieworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oscotec and Vieworks.

Diversification Opportunities for Oscotec and Vieworks

0.91

Correlation Coefficient

Oscotec  Vieworks

Almost no diversification

The 3 months correlation between Oscotec and Vieworks is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oscotec and Vieworks Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vieworks and Oscotec 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 Oscotec are associated (or correlated) with Vieworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vieworks has no effect on the direction of Oscotec i.e., Oscotec and Vieworks go up and down completely randomly.

Pair Corralation between Oscotec and Vieworks

Assuming the 90 days trading horizon Oscotec is expected to under-perform the Vieworks. In addition to that, Oscotec is 1.76 times more volatile than Vieworks Co. It trades about -0.22 of its total potential returns per unit of risk. Vieworks Co is currently generating about -0.15 per unit of volatility. If you would invest  2,576,437  in Vieworks Co on October 9, 2024 and sell it today you would lose (406,437) from holding Vieworks Co or give up 15.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Oscotec  vs.  Vieworks Co

Oscotec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oscotec has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Vieworks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vieworks Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Oscotec and Vieworks

The main advantage of trading using opposite Oscotec and Vieworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oscotec position performs unexpectedly, Vieworks 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 Vieworks will offset losses from the drop in Vieworks' long position.

The idea behind Oscotec and Vieworks Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.