Correlation Between Osaka Steel and INTNED

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

By analyzing existing cross correlation between Osaka Steel Co, and INTNED 14 01 JUL 26, you can compare the effects of market volatilities on Osaka Steel and INTNED 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 Osaka Steel with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osaka Steel and INTNED.

Diversification Opportunities for Osaka Steel and INTNED

0.0

Correlation Coefficient

Osaka Steel  INTNED

Pay attention - limited upside

The 3 months correlation between Osaka and INTNED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Osaka Steel Co, and INTNED 14 01 JUL 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 14 01 and Osaka Steel 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 Osaka Steel Co, are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 14 01 has no effect on the direction of Osaka Steel i.e., Osaka Steel and INTNED go up and down completely randomly.

Pair Corralation between Osaka Steel and INTNED

Assuming the 90 days horizon Osaka Steel is expected to generate 2.88 times less return on investment than INTNED. But when comparing it to its historical volatility, Osaka Steel Co, is 21.42 times less risky than INTNED. It trades about 0.06 of its potential returns per unit of risk. INTNED 14 01 JUL 26 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  9,062  in INTNED 14 01 JUL 26 on October 4, 2024 and sell it today you would earn a total of  55.00  from holding INTNED 14 01 JUL 26 or generate 0.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	41.62%
Values	Daily Returns

Osaka Steel Co,  vs.  INTNED 14 01 JUL 26

Osaka Steel Co,

Risk-Adjusted Performance

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Very Weak

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

INTNED 14 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 14 01 JUL 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for INTNED 14 01 JUL 26 investors.

Pair Trading with Osaka Steel and INTNED

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

The idea behind Osaka Steel Co, and INTNED 14 01 JUL 26 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.