Correlation Between Oaktree Diversifiedome and Oaktree (lux)

Can any of the company-specific risk be diversified away by investing in both Oaktree Diversifiedome and Oaktree (lux) 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 Oaktree Diversifiedome and Oaktree (lux) into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oaktree Diversifiedome and Oaktree Iii , you can compare the effects of market volatilities on Oaktree Diversifiedome and Oaktree (lux) 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 Oaktree Diversifiedome with a short position of Oaktree (lux). Check out your portfolio center. Please also check ongoing floating volatility patterns of Oaktree Diversifiedome and Oaktree (lux).

Diversification Opportunities for Oaktree Diversifiedome and Oaktree (lux)

0.62

Correlation Coefficient

Oaktree Diversifiedome  Oaktree (lux)

Poor diversification

The 3 months correlation between Oaktree and Oaktree is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Oaktree Diversifiedome and Oaktree Iii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree (lux) and Oaktree Diversifiedome 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 Oaktree Diversifiedome are associated (or correlated) with Oaktree (lux). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree (lux) has no effect on the direction of Oaktree Diversifiedome i.e., Oaktree Diversifiedome and Oaktree (lux) go up and down completely randomly.

Pair Corralation between Oaktree Diversifiedome and Oaktree (lux)

Assuming the 90 days horizon Oaktree Diversifiedome is expected to under-perform the Oaktree (lux). In addition to that, Oaktree Diversifiedome is 7.37 times more volatile than Oaktree Iii . It trades about -0.14 of its total potential returns per unit of risk. Oaktree Iii is currently generating about 0.13 per unit of volatility. If you would invest  13,522  in Oaktree Iii on October 9, 2024 and sell it today you would earn a total of  25.00  from holding Oaktree Iii or generate 0.18% return on investment over 90 days.

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

Oaktree Diversifiedome  vs.  Oaktree Iii

Oaktree Diversifiedome

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Diversifiedome are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Oaktree Diversifiedome is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oaktree (lux)

Risk-Adjusted Performance

30 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Iii are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Oaktree (lux) is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Oaktree Diversifiedome and Oaktree (lux)

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

The idea behind Oaktree Diversifiedome and Oaktree Iii 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.

Check out your portfolio center.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.