Correlation Between Oculis Holding and Origo Hf

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

By analyzing existing cross correlation between Oculis Holding AG and Origo Hf, you can compare the effects of market volatilities on Oculis Holding and Origo Hf 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 Oculis Holding with a short position of Origo Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oculis Holding and Origo Hf.

Diversification Opportunities for Oculis Holding and Origo Hf

0.0

Correlation Coefficient

Oculis Holding  Origo Hf

Pay attention - limited upside

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

Pair Corralation between Oculis Holding and Origo Hf

If you would invest  213,000  in Oculis Holding AG on December 3, 2024 and sell it today you would earn a total of  63,000  from holding Oculis Holding AG or generate 29.58% return on investment over 90 days.

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

Oculis Holding AG  vs.  Origo Hf

Oculis Holding AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oculis Holding AG are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Oculis Holding exhibited solid returns over the last few months and may actually be approaching a breakup point.

Origo Hf

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Oculis Holding and Origo Hf

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

The idea behind Oculis Holding AG and Origo Hf 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.