Correlation Between Coda Octopus and Earthgrains

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

By analyzing existing cross correlation between Coda Octopus Group and Earthgrains Co, you can compare the effects of market volatilities on Coda Octopus and Earthgrains 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 Coda Octopus with a short position of Earthgrains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coda Octopus and Earthgrains.

Diversification Opportunities for Coda Octopus and Earthgrains

0.0

Correlation Coefficient

Coda Octopus  Earthgrains

Pay attention - limited upside

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

Pair Corralation between Coda Octopus and Earthgrains

If you would invest  829.00  in Coda Octopus Group on October 23, 2024 and sell it today you would lose (15.00) from holding Coda Octopus Group or give up 1.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Coda Octopus Group  vs.  Earthgrains Co

Coda Octopus Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coda Octopus Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Coda Octopus is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Earthgrains

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Earthgrains Co has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Earthgrains is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Coda Octopus and Earthgrains

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

The idea behind Coda Octopus Group and Earthgrains Co 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.