Correlation Between One Software and Golan Plastic

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

By analyzing existing cross correlation between One Software Technologies and Golan Plastic, you can compare the effects of market volatilities on One Software and Golan Plastic 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 One Software with a short position of Golan Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Software and Golan Plastic.

Diversification Opportunities for One Software and Golan Plastic

-0.12

Correlation Coefficient

One Software  Golan Plastic

Good diversification

The 3 months correlation between One and Golan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding One Software Technologies and Golan Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golan Plastic and One Software 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 One Software Technologies are associated (or correlated) with Golan Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golan Plastic has no effect on the direction of One Software i.e., One Software and Golan Plastic go up and down completely randomly.

Pair Corralation between One Software and Golan Plastic

Assuming the 90 days trading horizon One Software Technologies is expected to generate 0.82 times more return on investment than Golan Plastic. However, One Software Technologies is 1.22 times less risky than Golan Plastic. It trades about 0.04 of its potential returns per unit of risk. Golan Plastic is currently generating about -0.19 per unit of risk. If you would invest  671,444  in One Software Technologies on December 28, 2024 and sell it today you would earn a total of  19,325  from holding One Software Technologies or generate 2.88% return on investment over 90 days.

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

One Software Technologies  vs.  Golan Plastic

One Software Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in One Software Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, One Software is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Golan Plastic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Golan Plastic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with One Software and Golan Plastic

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

The idea behind One Software Technologies and Golan Plastic 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.