Correlation Between Oasis Hotel and Stepstone
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel and Stepstone 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 Oasis Hotel and Stepstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Stepstone Group, you can compare the effects of market volatilities on Oasis Hotel and Stepstone 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 Oasis Hotel with a short position of Stepstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Stepstone.
Diversification Opportunities for Oasis Hotel and Stepstone
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Stepstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and Stepstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepstone Group and Oasis Hotel 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 Oasis Hotel Resort are associated (or correlated) with Stepstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepstone Group has no effect on the direction of Oasis Hotel i.e., Oasis Hotel and Stepstone go up and down completely randomly.
Pair Corralation between Oasis Hotel and Stepstone
If you would invest 4,505 in Stepstone Group on September 24, 2024 and sell it today you would earn a total of 1,307 from holding Stepstone Group or generate 29.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.21% |
Values | Daily Returns |
Oasis Hotel Resort vs. Stepstone Group
Performance |
Timeline |
Oasis Hotel Resort |
Stepstone Group |
Oasis Hotel and Stepstone Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oasis Hotel and Stepstone
The main advantage of trading using opposite Oasis Hotel and Stepstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel position performs unexpectedly, Stepstone 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 Stepstone will offset losses from the drop in Stepstone's long position.Oasis Hotel vs. CDW Corp | Oasis Hotel vs. Cedar Realty Trust | Oasis Hotel vs. Coupang LLC | Oasis Hotel vs. Asure Software |
Stepstone vs. Aquagold International | Stepstone vs. Morningstar Unconstrained Allocation | Stepstone vs. Thrivent High Yield | Stepstone vs. Via Renewables |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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