Correlation Between OCN Old and Greystone Housing

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

By analyzing existing cross correlation between OCN Old and Greystone Housing Impact, you can compare the effects of market volatilities on OCN Old and Greystone Housing 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 OCN Old with a short position of Greystone Housing. Check out your portfolio center. Please also check ongoing floating volatility patterns of OCN Old and Greystone Housing.

Diversification Opportunities for OCN Old and Greystone Housing

0.0

Correlation Coefficient

OCN Old  Greystone Housing

Pay attention - limited upside

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

Pair Corralation between OCN Old and Greystone Housing

If you would invest  1,037  in Greystone Housing Impact on December 29, 2024 and sell it today you would earn a total of  239.00  from holding Greystone Housing Impact or generate 23.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

OCN Old  vs.  Greystone Housing Impact

OCN Old

Risk-Adjusted Performance

Very Weak

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

Greystone Housing Impact

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Greystone Housing Impact are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical indicators, Greystone Housing demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OCN Old and Greystone Housing

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

The idea behind OCN Old and Greystone Housing Impact 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.