Correlation Between Oneview Healthcare and Macquarie Group

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

Diversification Opportunities for Oneview Healthcare and Macquarie Group

-0.4

Correlation Coefficient

Oneview Healthcare  Macquarie Group

Very good diversification

The 3 months correlation between Oneview and Macquarie is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Oneview Healthcare PLC and Macquarie Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group 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 Macquarie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Oneview Healthcare i.e., Oneview Healthcare and Macquarie Group go up and down completely randomly.

Pair Corralation between Oneview Healthcare and Macquarie Group

Assuming the 90 days trading horizon Oneview Healthcare PLC is expected to generate 13.02 times more return on investment than Macquarie Group. However, Oneview Healthcare is 13.02 times more volatile than Macquarie Group Ltd. It trades about 0.06 of its potential returns per unit of risk. Macquarie Group Ltd is currently generating about 0.06 per unit of risk. If you would invest  11.00  in Oneview Healthcare PLC on October 10, 2024 and sell it today you would earn a total of  18.00  from holding Oneview Healthcare PLC or generate 163.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Oneview Healthcare PLC  vs.  Macquarie Group Ltd

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.

Macquarie Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Macquarie Group Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Macquarie Group is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oneview Healthcare and Macquarie Group

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

The idea behind Oneview Healthcare PLC and Macquarie Group Ltd 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.