Correlation Between Oshidori International and New World

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

Diversification Opportunities for Oshidori International and New World

-0.74

Correlation Coefficient

Oshidori International  New World

Pay attention - limited upside

The 3 months correlation between Oshidori and New is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and New World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New World Fund 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 New World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New World Fund has no effect on the direction of Oshidori International i.e., Oshidori International and New World go up and down completely randomly.

Pair Corralation between Oshidori International and New World

Assuming the 90 days horizon Oshidori International Holdings is expected to generate 153.27 times more return on investment than New World. However, Oshidori International is 153.27 times more volatile than New World Fund. It trades about 0.15 of its potential returns per unit of risk. New World Fund is currently generating about -0.12 per unit of risk. If you would invest  0.07  in Oshidori International Holdings on September 21, 2024 and sell it today you would earn a total of  3.53  from holding Oshidori International Holdings or generate 5042.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Oshidori International Holding  vs.  New World Fund

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

New World Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days New World Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Oshidori International and New World

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

The idea behind Oshidori International Holdings and New World Fund 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.