Correlation Between Oji Holdings and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Oji Holdings and FEMALE HEALTH 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 Oji Holdings and FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oji Holdings and FEMALE HEALTH, you can compare the effects of market volatilities on Oji Holdings and FEMALE HEALTH 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 Oji Holdings with a short position of FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oji Holdings and FEMALE HEALTH.
Diversification Opportunities for Oji Holdings and FEMALE HEALTH
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oji and FEMALE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oji Holdings and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH and Oji Holdings 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 Oji Holdings are associated (or correlated) with FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Oji Holdings i.e., Oji Holdings and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Oji Holdings and FEMALE HEALTH
Assuming the 90 days horizon Oji Holdings is expected to generate 0.2 times more return on investment than FEMALE HEALTH. However, Oji Holdings is 4.92 times less risky than FEMALE HEALTH. It trades about 0.13 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.01 per unit of risk. If you would invest 346.00 in Oji Holdings on December 5, 2024 and sell it today you would earn a total of 48.00 from holding Oji Holdings or generate 13.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Oji Holdings vs. FEMALE HEALTH
Performance |
Timeline |
Oji Holdings |
FEMALE HEALTH |
Oji Holdings and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oji Holdings and FEMALE HEALTH
The main advantage of trading using opposite Oji Holdings and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oji Holdings position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.Oji Holdings vs. GRIFFIN MINING LTD | Oji Holdings vs. Calibre Mining Corp | Oji Holdings vs. CORNISH METALS INC | Oji Holdings vs. GOLDQUEST MINING |
FEMALE HEALTH vs. GUILD ESPORTS PLC | FEMALE HEALTH vs. USWE SPORTS AB | FEMALE HEALTH vs. Gaming and Leisure | FEMALE HEALTH vs. PLAYTECH |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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