Correlation Between Oneview Healthcare and JB Hi

Can any of the company-specific risk be diversified away by investing in both Oneview Healthcare and JB Hi 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 JB Hi 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 JB Hi Fi, you can compare the effects of market volatilities on Oneview Healthcare and JB Hi 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 JB Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneview Healthcare and JB Hi.

Diversification Opportunities for Oneview Healthcare and JB Hi

-0.58

Correlation Coefficient

Oneview Healthcare  JB Hi

Excellent diversification

The 3 months correlation between Oneview and JBH is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Oneview Healthcare PLC and JB Hi Fi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hi Fi 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 JB Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hi Fi has no effect on the direction of Oneview Healthcare i.e., Oneview Healthcare and JB Hi go up and down completely randomly.

Pair Corralation between Oneview Healthcare and JB Hi

Assuming the 90 days trading horizon Oneview Healthcare PLC is expected to under-perform the JB Hi. In addition to that, Oneview Healthcare is 1.56 times more volatile than JB Hi Fi. It trades about -0.05 of its total potential returns per unit of risk. JB Hi Fi is currently generating about 0.17 per unit of volatility. If you would invest  8,049  in JB Hi Fi on October 8, 2024 and sell it today you would earn a total of  1,446  from holding JB Hi Fi or generate 17.96% return on investment over 90 days.

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

Oneview Healthcare PLC  vs.  JB Hi Fi

Oneview Healthcare PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oneview Healthcare PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

JB Hi Fi

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days JB Hi Fi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak technical indicators, JB Hi unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oneview Healthcare and JB Hi

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

The idea behind Oneview Healthcare PLC and JB Hi Fi 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 Transaction History module to view history of all your transactions and understand their impact on performance.