Correlation Between Oneview Healthcare and Sky Metals

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

Diversification Opportunities for Oneview Healthcare and Sky Metals

-0.32

Correlation Coefficient

Oneview Healthcare  Sky Metals

Very good diversification

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

Pair Corralation between Oneview Healthcare and Sky Metals

Assuming the 90 days trading horizon Oneview Healthcare PLC is expected to generate 1.05 times more return on investment than Sky Metals. However, Oneview Healthcare is 1.05 times more volatile than Sky Metals. It trades about 0.07 of its potential returns per unit of risk. Sky Metals is currently generating about -0.05 per unit of risk. If you would invest  32.00  in Oneview Healthcare PLC on December 4, 2024 and sell it today you would earn a total of  3.00  from holding Oneview Healthcare PLC or generate 9.38% 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.  Sky Metals

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.

Sky Metals

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Oneview Healthcare and Sky Metals

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

The idea behind Oneview Healthcare PLC and Sky Metals 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.