Correlation Between Oneview Healthcare and EROAD

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

By analyzing existing cross correlation between Oneview Healthcare PLC and EROAD, you can compare the effects of market volatilities on Oneview Healthcare and EROAD 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 Oneview Healthcare with a short position of EROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneview Healthcare and EROAD.

Diversification Opportunities for Oneview Healthcare and EROAD

-0.32

Correlation Coefficient

Oneview Healthcare  EROAD

Very good diversification

The 3 months correlation between Oneview and EROAD is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Oneview Healthcare PLC and EROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EROAD and Oneview Healthcare 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 Oneview Healthcare PLC are associated (or correlated) with EROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EROAD has no effect on the direction of Oneview Healthcare i.e., Oneview Healthcare and EROAD go up and down completely randomly.

Pair Corralation between Oneview Healthcare and EROAD

Assuming the 90 days trading horizon Oneview Healthcare PLC is expected to generate 1.1 times more return on investment than EROAD. However, Oneview Healthcare is 1.1 times more volatile than EROAD. It trades about 0.48 of its potential returns per unit of risk. EROAD is currently generating about 0.01 per unit of risk. If you would invest  28.00  in Oneview Healthcare PLC on December 4, 2024 and sell it today you would earn a total of  7.00  from holding Oneview Healthcare PLC or generate 25.0% return on investment over 90 days.

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

Oneview Healthcare PLC  vs.  EROAD

Oneview Healthcare PLC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oneview Healthcare PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Oneview Healthcare may actually be approaching a critical reversion point that can send shares even higher in April 2025.

EROAD

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in EROAD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, EROAD unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oneview Healthcare and EROAD

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

The idea behind Oneview Healthcare PLC and EROAD 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.