Correlation Between Oshidori International and GiveMePower Corp

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

Diversification Opportunities for Oshidori International and GiveMePower Corp

-0.62

Correlation Coefficient

Oshidori International  GiveMePower Corp

Excellent diversification

The 3 months correlation between Oshidori and GiveMePower is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and GiveMePower Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiveMePower Corp 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 GiveMePower Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiveMePower Corp has no effect on the direction of Oshidori International i.e., Oshidori International and GiveMePower Corp go up and down completely randomly.

Pair Corralation between Oshidori International and GiveMePower Corp

Assuming the 90 days horizon Oshidori International Holdings is expected to generate 2.52 times more return on investment than GiveMePower Corp. However, Oshidori International is 2.52 times more volatile than GiveMePower Corp. It trades about 0.22 of its potential returns per unit of risk. GiveMePower Corp is currently generating about 0.2 per unit of risk. If you would invest  1.00  in Oshidori International Holdings on October 5, 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	Weak
Accuracy	95.24%
Values	Daily Returns

Oshidori International Holding  vs.  GiveMePower Corp

Oshidori International

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oshidori International Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Oshidori International reported solid returns over the last few months and may actually be approaching a breakup point.

GiveMePower Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GiveMePower Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, GiveMePower Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oshidori International and GiveMePower Corp

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

The idea behind Oshidori International Holdings and GiveMePower Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.