Correlation Between Advanced Braking and Oneview Healthcare

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Advanced Braking and Oneview Healthcare 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 Advanced Braking and Oneview Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Braking Technology and Oneview Healthcare PLC, you can compare the effects of market volatilities on Advanced Braking and Oneview Healthcare 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 Advanced Braking with a short position of Oneview Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Braking and Oneview Healthcare.

Diversification Opportunities for Advanced Braking and Oneview Healthcare

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Advanced and Oneview is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Braking Technology and Oneview Healthcare PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneview Healthcare PLC and Advanced Braking 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 Advanced Braking Technology are associated (or correlated) with Oneview Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneview Healthcare PLC has no effect on the direction of Advanced Braking i.e., Advanced Braking and Oneview Healthcare go up and down completely randomly.

Pair Corralation between Advanced Braking and Oneview Healthcare

Assuming the 90 days trading horizon Advanced Braking is expected to generate 1.76 times less return on investment than Oneview Healthcare. But when comparing it to its historical volatility, Advanced Braking Technology is 1.8 times less risky than Oneview Healthcare. It trades about 0.07 of its potential returns per unit of risk. Oneview Healthcare PLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  12.00  in Oneview Healthcare PLC on September 9, 2024 and sell it today you would earn a total of  22.00  from holding Oneview Healthcare PLC or generate 183.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Advanced Braking Technology  vs.  Oneview Healthcare PLC

 Performance 
       Timeline  
Advanced Braking Tec 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Braking Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Advanced Braking unveiled solid returns over the last few months and may actually be approaching a breakup point.
Oneview Healthcare PLC 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Oneview Healthcare PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Oneview Healthcare is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Advanced Braking and Oneview Healthcare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Advanced Braking and Oneview Healthcare

The main advantage of trading using opposite Advanced Braking and Oneview Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Braking position performs unexpectedly, Oneview Healthcare 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 Oneview Healthcare will offset losses from the drop in Oneview Healthcare's long position.
The idea behind Advanced Braking Technology and Oneview Healthcare PLC 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.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like