Correlation Between Goeasy and Ocumetics Technology

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

By analyzing existing cross correlation between goeasy and Ocumetics Technology Corp, you can compare the effects of market volatilities on Goeasy and Ocumetics 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 Goeasy with a short position of Ocumetics Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goeasy and Ocumetics Technology.

Diversification Opportunities for Goeasy and Ocumetics Technology

0.41

Correlation Coefficient

Goeasy  Ocumetics Technology

Very weak diversification

The 3 months correlation between Goeasy and Ocumetics is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding goeasy and Ocumetics Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocumetics Technology Corp and Goeasy 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 goeasy are associated (or correlated) with Ocumetics Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocumetics Technology Corp has no effect on the direction of Goeasy i.e., Goeasy and Ocumetics Technology go up and down completely randomly.

Pair Corralation between Goeasy and Ocumetics Technology

Assuming the 90 days trading horizon goeasy is expected to under-perform the Ocumetics Technology. But the stock apears to be less risky and, when comparing its historical volatility, goeasy is 2.49 times less risky than Ocumetics Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Ocumetics Technology Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  29.00  in Ocumetics Technology Corp on December 30, 2024 and sell it today you would lose (1.00) from holding Ocumetics Technology Corp or give up 3.45% of portfolio value over 90 days.

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

goeasy  vs.  Ocumetics Technology Corp

goeasy

Risk-Adjusted Performance

Very Weak

Over the last 90 days goeasy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Goeasy is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Ocumetics Technology Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ocumetics Technology Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Ocumetics Technology may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Goeasy and Ocumetics Technology

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

The idea behind goeasy and Ocumetics Technology Corp 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.