Correlation Between Oaktree (lux) and Oaktree Diversifiedome

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

By analyzing existing cross correlation between Oaktree Iii and Oaktree Diversifiedome, you can compare the effects of market volatilities on Oaktree (lux) and Oaktree Diversifiedome 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 Oaktree (lux) with a short position of Oaktree Diversifiedome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oaktree (lux) and Oaktree Diversifiedome.

Diversification Opportunities for Oaktree (lux) and Oaktree Diversifiedome

0.62

Correlation Coefficient

Oaktree (lux)  Oaktree Diversifiedome

Poor diversification

The 3 months correlation between Oaktree and Oaktree is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Oaktree Iii and Oaktree Diversifiedome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Diversifiedome and Oaktree (lux) 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 Oaktree Iii are associated (or correlated) with Oaktree Diversifiedome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Diversifiedome has no effect on the direction of Oaktree (lux) i.e., Oaktree (lux) and Oaktree Diversifiedome go up and down completely randomly.

Pair Corralation between Oaktree (lux) and Oaktree Diversifiedome

Assuming the 90 days trading horizon Oaktree Iii is expected to generate 0.14 times more return on investment than Oaktree Diversifiedome. However, Oaktree Iii is 7.33 times less risky than Oaktree Diversifiedome. It trades about 0.14 of its potential returns per unit of risk. Oaktree Diversifiedome is currently generating about -0.15 per unit of risk. If you would invest  13,522  in Oaktree Iii on October 8, 2024 and sell it today you would earn a total of  25.00  from holding Oaktree Iii or generate 0.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.74%
Values	Daily Returns

Oaktree Iii   vs.  Oaktree Diversifiedome

Oaktree (lux)

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Iii are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Oaktree (lux) is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Oaktree Diversifiedome

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oaktree Diversifiedome has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Oaktree Diversifiedome is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oaktree (lux) and Oaktree Diversifiedome

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

The idea behind Oaktree Iii and Oaktree Diversifiedome 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.