Correlation Between GO2 People and Oneview Healthcare

Can any of the company-specific risk be diversified away by investing in both GO2 People and Oneview Healthcare 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 GO2 People and Oneview Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GO2 People and Oneview Healthcare PLC, you can compare the effects of market volatilities on GO2 People and Oneview Healthcare 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 GO2 People with a short position of Oneview Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of GO2 People and Oneview Healthcare.

Diversification Opportunities for GO2 People and Oneview Healthcare

0.0

Correlation Coefficient

GO2 People  Oneview Healthcare

Pay attention - limited upside

The 3 months correlation between GO2 and Oneview is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GO2 People and Oneview Healthcare PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneview Healthcare PLC and GO2 People 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 GO2 People are associated (or correlated) with Oneview Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneview Healthcare PLC has no effect on the direction of GO2 People i.e., GO2 People and Oneview Healthcare go up and down completely randomly.

Pair Corralation between GO2 People and Oneview Healthcare

Assuming the 90 days trading horizon GO2 People is expected to generate 8.71 times more return on investment than Oneview Healthcare. However, GO2 People is 8.71 times more volatile than Oneview Healthcare PLC. It trades about 0.05 of its potential returns per unit of risk. Oneview Healthcare PLC is currently generating about 0.06 per unit of risk. If you would invest  1.10  in GO2 People on October 10, 2024 and sell it today you would earn a total of  65.90  from holding GO2 People or generate 5990.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	92.79%
Values	Daily Returns

GO2 People  vs.  Oneview Healthcare PLC

GO2 People

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GO2 People has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, GO2 People is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Oneview Healthcare PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oneview Healthcare PLC 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 stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with GO2 People and Oneview Healthcare

The main advantage of trading using opposite GO2 People and Oneview Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GO2 People position performs unexpectedly, Oneview Healthcare 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 Oneview Healthcare will offset losses from the drop in Oneview Healthcare's long position.

The idea behind GO2 People and Oneview Healthcare PLC 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.