Correlation Between Global E and Oak Woods

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Global E and Oak Woods 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 Global E and Oak Woods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Oak Woods Acquisition, you can compare the effects of market volatilities on Global E and Oak Woods 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 Global E with a short position of Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Oak Woods.

Diversification Opportunities for Global E and Oak Woods

GlobalOakDiversified AwayGlobalOakDiversified Away100%
0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between Global and Oak is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition and Global E 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 Global E Online are associated (or correlated) with Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of Global E i.e., Global E and Oak Woods go up and down completely randomly.

Pair Corralation between Global E and Oak Woods

Given the investment horizon of 90 days Global E Online is expected to generate 4.55 times more return on investment than Oak Woods. However, Global E is 4.55 times more volatile than Oak Woods Acquisition. It trades about 0.03 of its potential returns per unit of risk. Oak Woods Acquisition is currently generating about 0.03 per unit of risk. If you would invest  4,113  in Global E Online on November 26, 2024 and sell it today you would earn a total of  491.00  from holding Global E Online or generate 11.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Global E Online  vs.  Oak Woods Acquisition

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 01020304050
JavaScript chart by amCharts 3.21.15GLBE OAKUU
       Timeline  
Global E Online 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Global E Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb45505560
Oak Woods Acquisition 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Oak Woods Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Oak Woods is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.411.511.611.711.811.912

Global E and Oak Woods Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.69-8.01-5.32-2.64-0.022.635.398.1510.9213.68 0.20.40.60.81.01.2
JavaScript chart by amCharts 3.21.15GLBE OAKUU
       Returns  

Pair Trading with Global E and Oak Woods

The main advantage of trading using opposite Global E and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.
The idea behind Global E Online and Oak Woods Acquisition 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes