Correlation Between My Size and Oneconnect Financial

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

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

Diversification Opportunities for My Size and Oneconnect Financial

-0.64

Correlation Coefficient

My Size  Oneconnect Financial

Excellent diversification

The 3 months correlation between MYSZ and Oneconnect is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding My Size and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial and My Size 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 My Size are associated (or correlated) with Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of My Size i.e., My Size and Oneconnect Financial go up and down completely randomly.

Pair Corralation between My Size and Oneconnect Financial

Given the investment horizon of 90 days My Size is expected to under-perform the Oneconnect Financial. In addition to that, My Size is 1.33 times more volatile than Oneconnect Financial Technology. It trades about -0.12 of its total potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.27 per unit of volatility. If you would invest  262.00  in Oneconnect Financial Technology on December 29, 2024 and sell it today you would earn a total of  418.00  from holding Oneconnect Financial Technology or generate 159.54% return on investment over 90 days.

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

My Size  vs.  Oneconnect Financial Technolog

My Size

Risk-Adjusted Performance

Very Weak

Over the last 90 days My Size has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting 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 current disturbance may also be a sign of long term up-swing for the company investors.

Oneconnect Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oneconnect Financial Technology are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Oneconnect Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with My Size and Oneconnect Financial

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

The idea behind My Size and Oneconnect Financial Technology 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.