Correlation Between Cypherpunk Holdings and OFX Group

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

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

Diversification Opportunities for Cypherpunk Holdings and OFX Group

0.19

Correlation Coefficient

Cypherpunk Holdings  OFX Group

Average diversification

The 3 months correlation between Cypherpunk and OFX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cypherpunk Holdings and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group and Cypherpunk 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 Cypherpunk Holdings are associated (or correlated) with OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Cypherpunk Holdings i.e., Cypherpunk Holdings and OFX Group go up and down completely randomly.

Pair Corralation between Cypherpunk Holdings and OFX Group

Assuming the 90 days horizon Cypherpunk Holdings is expected to generate 4.86 times more return on investment than OFX Group. However, Cypherpunk Holdings is 4.86 times more volatile than OFX Group Ltd. It trades about 0.01 of its potential returns per unit of risk. OFX Group Ltd is currently generating about -0.13 per unit of risk. If you would invest  202.00  in Cypherpunk Holdings on December 30, 2024 and sell it today you would lose (43.00) from holding Cypherpunk Holdings or give up 21.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cypherpunk Holdings  vs.  OFX Group Ltd

Cypherpunk Holdings

Risk-Adjusted Performance

Weak

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

OFX Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days OFX Group Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cypherpunk Holdings and OFX Group

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

The idea behind Cypherpunk Holdings and OFX Group Ltd 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.