Correlation Between Ecclesiastical Insurance and Oxford Technology

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

By analyzing existing cross correlation between Ecclesiastical Insurance Office and Oxford Technology 2, you can compare the effects of market volatilities on Ecclesiastical Insurance and Oxford Technology 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 Ecclesiastical Insurance with a short position of Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecclesiastical Insurance and Oxford Technology.

Diversification Opportunities for Ecclesiastical Insurance and Oxford Technology

-0.71

Correlation Coefficient

Ecclesiastical Insurance  Oxford Technology

Pay attention - limited upside

The 3 months correlation between Ecclesiastical and Oxford is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ecclesiastical Insurance Offic and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology and Ecclesiastical Insurance 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 Ecclesiastical Insurance Office are associated (or correlated) with Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Ecclesiastical Insurance i.e., Ecclesiastical Insurance and Oxford Technology go up and down completely randomly.

Pair Corralation between Ecclesiastical Insurance and Oxford Technology

Assuming the 90 days trading horizon Ecclesiastical Insurance Office is expected to generate 0.85 times more return on investment than Oxford Technology. However, Ecclesiastical Insurance Office is 1.18 times less risky than Oxford Technology. It trades about 0.09 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.13 per unit of risk. If you would invest  13,200  in Ecclesiastical Insurance Office on December 31, 2024 and sell it today you would earn a total of  750.00  from holding Ecclesiastical Insurance Office or generate 5.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Ecclesiastical Insurance Offic  vs.  Oxford Technology 2

Ecclesiastical Insurance

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ecclesiastical Insurance Office are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ecclesiastical Insurance is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Oxford Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oxford Technology 2 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Ecclesiastical Insurance and Oxford Technology

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

The idea behind Ecclesiastical Insurance Office and Oxford Technology 2 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..