Correlation Between Oshidori International and Vanguard Commodity

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

Diversification Opportunities for Oshidori International and Vanguard Commodity

0.0

Correlation Coefficient

Oshidori International  Vanguard Commodity

Pay attention - limited upside

The 3 months correlation between Oshidori and Vanguard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and Vanguard Commodity Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Commodity 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 Vanguard Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Commodity has no effect on the direction of Oshidori International i.e., Oshidori International and Vanguard Commodity go up and down completely randomly.

Pair Corralation between Oshidori International and Vanguard Commodity

If you would invest  2,540  in Vanguard Commodity Strategy on December 30, 2024 and sell it today you would earn a total of  252.00  from holding Vanguard Commodity Strategy or generate 9.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Oshidori International Holding  vs.  Vanguard Commodity Strategy

Oshidori International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oshidori International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Oshidori International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Vanguard Commodity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Commodity Strategy are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Vanguard Commodity may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Oshidori International and Vanguard Commodity

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

The idea behind Oshidori International Holdings and Vanguard Commodity Strategy 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.