Correlation Between Adyen NV and OCBCSP

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

By analyzing existing cross correlation between Adyen NV and OCBCSP 1832 10 SEP 30, you can compare the effects of market volatilities on Adyen NV and OCBCSP 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 Adyen NV with a short position of OCBCSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adyen NV and OCBCSP.

Diversification Opportunities for Adyen NV and OCBCSP

0.0

Correlation Coefficient

Adyen NV  OCBCSP

Pay attention - limited upside

The 3 months correlation between Adyen and OCBCSP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Adyen NV and OCBCSP 1832 10 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCBCSP 1832 10 and Adyen NV 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 Adyen NV are associated (or correlated) with OCBCSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCBCSP 1832 10 has no effect on the direction of Adyen NV i.e., Adyen NV and OCBCSP go up and down completely randomly.

Pair Corralation between Adyen NV and OCBCSP

Assuming the 90 days horizon Adyen NV is expected to generate 8.3 times less return on investment than OCBCSP. But when comparing it to its historical volatility, Adyen NV is 1.05 times less risky than OCBCSP. It trades about 0.0 of its potential returns per unit of risk. OCBCSP 1832 10 SEP 30 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  9,695  in OCBCSP 1832 10 SEP 30 on October 6, 2024 and sell it today you would earn a total of  67.00  from holding OCBCSP 1832 10 SEP 30 or generate 0.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	27.42%
Values	Daily Returns

Adyen NV  vs.  OCBCSP 1832 10 SEP 30

Adyen NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adyen NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Adyen NV is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

OCBCSP 1832 10

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OCBCSP 1832 10 SEP 30 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, OCBCSP is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Adyen NV and OCBCSP

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

The idea behind Adyen NV and OCBCSP 1832 10 SEP 30 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.