Correlation Between International Money and OneSpaWorld Holdings

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

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

Diversification Opportunities for International Money and OneSpaWorld Holdings

-0.02

Correlation Coefficient

International Money  OneSpaWorld Holdings

Good diversification

The 3 months correlation between International and OneSpaWorld is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express and OneSpaWorld Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpaWorld Holdings and International Money 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 International Money Express are associated (or correlated) with OneSpaWorld Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpaWorld Holdings has no effect on the direction of International Money i.e., International Money and OneSpaWorld Holdings go up and down completely randomly.

Pair Corralation between International Money and OneSpaWorld Holdings

Given the investment horizon of 90 days International Money Express is expected to under-perform the OneSpaWorld Holdings. In addition to that, International Money is 1.25 times more volatile than OneSpaWorld Holdings. It trades about -0.03 of its total potential returns per unit of risk. OneSpaWorld Holdings is currently generating about 0.06 per unit of volatility. If you would invest  1,120  in OneSpaWorld Holdings on December 7, 2024 and sell it today you would earn a total of  721.00  from holding OneSpaWorld Holdings or generate 64.38% return on investment over 90 days.

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

International Money Express  vs.  OneSpaWorld Holdings

International Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days International Money Express has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain 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 recent confusion may also be a sign of long-lasting up-swing for the firm traders.

OneSpaWorld Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days OneSpaWorld Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, OneSpaWorld Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with International Money and OneSpaWorld Holdings

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

The idea behind International Money Express and OneSpaWorld Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.