Correlation Between Optec International and Dana
Can any of the company-specific risk be diversified away by investing in both Optec International and Dana 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 Optec International and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optec International and Dana Inc, you can compare the effects of market volatilities on Optec International and Dana 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 Optec International with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optec International and Dana.
Diversification Opportunities for Optec International and Dana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Optec and Dana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Optec International and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and Optec International 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 Optec International are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Optec International i.e., Optec International and Dana go up and down completely randomly.
Pair Corralation between Optec International and Dana
If you would invest 1,286 in Dana Inc on December 4, 2024 and sell it today you would earn a total of 82.00 from holding Dana Inc or generate 6.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Optec International vs. Dana Inc
Performance |
Timeline |
Optec International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Dana Inc |
Optec International and Dana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Optec International and Dana
The main advantage of trading using opposite Optec International and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optec International position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.Optec International vs. Service Team | Optec International vs. American Axle Manufacturing | Optec International vs. Modine Manufacturing | Optec International vs. Aeye Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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