Correlation Between Oneview Healthcare and Wam Capital

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

Diversification Opportunities for Oneview Healthcare and Wam Capital

0.1

Correlation Coefficient

Oneview Healthcare  Wam Capital

Average diversification

The 3 months correlation between Oneview and Wam is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Oneview Healthcare PLC and Wam Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wam Capital 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 Wam Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wam Capital has no effect on the direction of Oneview Healthcare i.e., Oneview Healthcare and Wam Capital go up and down completely randomly.

Pair Corralation between Oneview Healthcare and Wam Capital

Assuming the 90 days trading horizon Oneview Healthcare is expected to generate 1.04 times less return on investment than Wam Capital. In addition to that, Oneview Healthcare is 3.59 times more volatile than Wam Capital. It trades about 0.07 of its total potential returns per unit of risk. Wam Capital is currently generating about 0.26 per unit of volatility. If you would invest  150.00  in Wam Capital on November 29, 2024 and sell it today you would earn a total of  18.00  from holding Wam Capital or generate 12.0% return on investment over 90 days.

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

Oneview Healthcare PLC  vs.  Wam Capital

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 March 2025.

Wam Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wam Capital are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Wam Capital may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Oneview Healthcare and Wam Capital

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

The idea behind Oneview Healthcare PLC and Wam Capital 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.