Correlation Between Oasis Hotel and NORTHERN

Can any of the company-specific risk be diversified away by investing in both Oasis Hotel and NORTHERN 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 NORTHERN 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 NORTHERN TRUST PORATION, you can compare the effects of market volatilities on Oasis Hotel and NORTHERN 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 NORTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and NORTHERN.

Diversification Opportunities for Oasis Hotel and NORTHERN

0.0

Correlation Coefficient

Oasis Hotel  NORTHERN

Pay attention - limited upside

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

Pair Corralation between Oasis Hotel and NORTHERN

If you would invest  0.02  in Oasis Hotel Resort on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Oasis Hotel Resort or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Oasis Hotel Resort  vs.  NORTHERN TRUST PORATION

Oasis Hotel Resort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oasis Hotel Resort has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Oasis Hotel is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

NORTHERN TRUST PORATION

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NORTHERN TRUST PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NORTHERN TRUST PORATION investors.

Pair Trading with Oasis Hotel and NORTHERN

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

The idea behind Oasis Hotel Resort and NORTHERN TRUST PORATION 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.