Correlation Between Beowulf Mining and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both Beowulf Mining and Ocean Harvest 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 Beowulf Mining and Ocean Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beowulf Mining and Ocean Harvest Technology, you can compare the effects of market volatilities on Beowulf Mining and Ocean Harvest 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 Beowulf Mining with a short position of Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Ocean Harvest.
Diversification Opportunities for Beowulf Mining and Ocean Harvest
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beowulf and Ocean is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology and Beowulf Mining 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 Beowulf Mining are associated (or correlated) with Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and Ocean Harvest go up and down completely randomly.
Pair Corralation between Beowulf Mining and Ocean Harvest
Assuming the 90 days trading horizon Beowulf Mining is expected to under-perform the Ocean Harvest. In addition to that, Beowulf Mining is 7.72 times more volatile than Ocean Harvest Technology. It trades about -0.16 of its total potential returns per unit of risk. Ocean Harvest Technology is currently generating about -0.32 per unit of volatility. If you would invest 875.00 in Ocean Harvest Technology on September 25, 2024 and sell it today you would lose (50.00) from holding Ocean Harvest Technology or give up 5.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Beowulf Mining vs. Ocean Harvest Technology
Performance |
Timeline |
Beowulf Mining |
Ocean Harvest Technology |
Beowulf Mining and Ocean Harvest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beowulf Mining and Ocean Harvest
The main advantage of trading using opposite Beowulf Mining and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest's long position.Beowulf Mining vs. Givaudan SA | Beowulf Mining vs. Antofagasta PLC | Beowulf Mining vs. Ferrexpo PLC | Beowulf Mining vs. Atalaya Mining |
Ocean Harvest vs. Uniper SE | Ocean Harvest vs. Mulberry Group PLC | Ocean Harvest vs. London Security Plc | Ocean Harvest vs. Triad Group PLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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