Correlation Between Oshidori International and Champlain Mid

Can any of the company-specific risk be diversified away by investing in both Oshidori International and Champlain Mid 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 Oshidori International and Champlain Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oshidori International Holdings and Champlain Mid Cap, you can compare the effects of market volatilities on Oshidori International and Champlain Mid 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 Oshidori International with a short position of Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and Champlain Mid.

Diversification Opportunities for Oshidori International and Champlain Mid

-0.86

Correlation Coefficient

Oshidori International  Champlain Mid

Pay attention - limited upside

The 3 months correlation between Oshidori and Champlain is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid Cap and Oshidori 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 Oshidori International Holdings are associated (or correlated) with Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Oshidori International i.e., Oshidori International and Champlain Mid go up and down completely randomly.

Pair Corralation between Oshidori International and Champlain Mid

Assuming the 90 days horizon Oshidori International Holdings is expected to generate 22.69 times more return on investment than Champlain Mid. However, Oshidori International is 22.69 times more volatile than Champlain Mid Cap. It trades about 0.13 of its potential returns per unit of risk. Champlain Mid Cap is currently generating about -0.14 per unit of risk. If you would invest  1.00  in Oshidori International Holdings on November 28, 2024 and sell it today you would earn a total of  2.60  from holding Oshidori International Holdings or generate 260.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.31%
Values	Daily Returns

Oshidori International Holding  vs.  Champlain Mid Cap

Oshidori International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oshidori International Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Oshidori International reported solid returns over the last few months and may actually be approaching a breakup point.

Champlain Mid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Champlain Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Oshidori International and Champlain Mid

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

The idea behind Oshidori International Holdings and Champlain Mid Cap 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.