Correlation Between Oshidori International and LifeSpeak

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

Diversification Opportunities for Oshidori International and LifeSpeak

-0.55

Correlation Coefficient

Oshidori International  LifeSpeak

Excellent diversification

The 3 months correlation between Oshidori and LifeSpeak is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and LifeSpeak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeSpeak 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 LifeSpeak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeSpeak has no effect on the direction of Oshidori International i.e., Oshidori International and LifeSpeak go up and down completely randomly.

Pair Corralation between Oshidori International and LifeSpeak

Assuming the 90 days horizon Oshidori International Holdings is expected to generate 11.62 times more return on investment than LifeSpeak. However, Oshidori International is 11.62 times more volatile than LifeSpeak. It trades about 0.22 of its potential returns per unit of risk. LifeSpeak is currently generating about 0.09 per unit of risk. If you would invest  1.00  in Oshidori International Holdings on September 22, 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	Very Weak
Accuracy	95.45%
Values	Daily Returns

Oshidori International Holding  vs.  LifeSpeak

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 fragile fundamental indicators, Oshidori International reported solid returns over the last few months and may actually be approaching a breakup point.

LifeSpeak

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LifeSpeak has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Oshidori International and LifeSpeak

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

The idea behind Oshidori International Holdings and LifeSpeak 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.