Correlation Between Solocal Group and Ossiam Minimum

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

By analyzing existing cross correlation between Solocal Group SA and Ossiam Minimum Variance, you can compare the effects of market volatilities on Solocal Group and Ossiam Minimum 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 Solocal Group with a short position of Ossiam Minimum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solocal Group and Ossiam Minimum.

Diversification Opportunities for Solocal Group and Ossiam Minimum

0.0

Correlation Coefficient

Solocal Group  Ossiam Minimum

Pay attention - limited upside

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

Pair Corralation between Solocal Group and Ossiam Minimum

If you would invest  280.00  in Solocal Group SA on September 4, 2024 and sell it today you would lose (1.00) from holding Solocal Group SA or give up 0.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Solocal Group SA  vs.  Ossiam Minimum Variance

Solocal Group SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Solocal Group SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Solocal Group is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Ossiam Minimum Variance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ossiam Minimum Variance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ossiam Minimum is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Solocal Group and Ossiam Minimum

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

The idea behind Solocal Group SA and Ossiam Minimum Variance 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.