Correlation Between Breeze Holdings and OXUS Old

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

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

Diversification Opportunities for Breeze Holdings and OXUS Old

0.88

Correlation Coefficient

Breeze Holdings  OXUS Old

Very poor diversification

The 3 months correlation between Breeze and OXUS is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Breeze Holdings Acquisition and OXUS Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OXUS Old and Breeze Holdings 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 Breeze Holdings Acquisition are associated (or correlated) with OXUS Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OXUS Old has no effect on the direction of Breeze Holdings i.e., Breeze Holdings and OXUS Old go up and down completely randomly.

Pair Corralation between Breeze Holdings and OXUS Old

Assuming the 90 days horizon Breeze Holdings Acquisition is expected to generate 93.6 times more return on investment than OXUS Old. However, Breeze Holdings is 93.6 times more volatile than OXUS Old. It trades about 0.13 of its potential returns per unit of risk. OXUS Old is currently generating about 0.21 per unit of risk. If you would invest  8.00  in Breeze Holdings Acquisition on October 11, 2024 and sell it today you would earn a total of  14.00  from holding Breeze Holdings Acquisition or generate 175.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	93.75%
Values	Daily Returns

Breeze Holdings Acquisition  vs.  OXUS Old

Breeze Holdings Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Breeze Holdings Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Breeze Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

OXUS Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OXUS Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, OXUS Old is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Breeze Holdings and OXUS Old

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

The idea behind Breeze Holdings Acquisition and OXUS Old 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.