Correlation Between Onxeo SA and Schibsted ASA

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

By analyzing existing cross correlation between Onxeo SA and Schibsted ASA B, you can compare the effects of market volatilities on Onxeo SA and Schibsted ASA 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 Onxeo SA with a short position of Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onxeo SA and Schibsted ASA.

Diversification Opportunities for Onxeo SA and Schibsted ASA

0.39

Correlation Coefficient

Onxeo SA  Schibsted ASA

Weak diversification

The 3 months correlation between Onxeo and Schibsted is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Onxeo SA and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B and Onxeo SA 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 Onxeo SA are associated (or correlated) with Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Onxeo SA i.e., Onxeo SA and Schibsted ASA go up and down completely randomly.

Pair Corralation between Onxeo SA and Schibsted ASA

Assuming the 90 days horizon Onxeo SA is expected to generate 6.67 times more return on investment than Schibsted ASA. However, Onxeo SA is 6.67 times more volatile than Schibsted ASA B. It trades about 0.01 of its potential returns per unit of risk. Schibsted ASA B is currently generating about -0.18 per unit of risk. If you would invest  7.14  in Onxeo SA on December 4, 2024 and sell it today you would lose (2.09) from holding Onxeo SA or give up 29.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Onxeo SA  vs.  Schibsted ASA B

Onxeo SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Onxeo SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Onxeo SA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Schibsted ASA B

Risk-Adjusted Performance

Very Weak

Over the last 90 days Schibsted ASA B has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Onxeo SA and Schibsted ASA

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

The idea behind Onxeo SA and Schibsted ASA B 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.