Correlation Between OneSpaWorld Holdings and Acushnet Holdings

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

By analyzing existing cross correlation between OneSpaWorld Holdings and Acushnet Holdings Corp, you can compare the effects of market volatilities on OneSpaWorld Holdings and Acushnet Holdings 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 OneSpaWorld Holdings with a short position of Acushnet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpaWorld Holdings and Acushnet Holdings.

Diversification Opportunities for OneSpaWorld Holdings and Acushnet Holdings

-0.64

Correlation Coefficient

OneSpaWorld Holdings  Acushnet Holdings

Excellent diversification

The 3 months correlation between OneSpaWorld and Acushnet is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding OneSpaWorld Holdings and Acushnet Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acushnet Holdings Corp and OneSpaWorld Holdings 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 OneSpaWorld Holdings are associated (or correlated) with Acushnet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acushnet Holdings Corp has no effect on the direction of OneSpaWorld Holdings i.e., OneSpaWorld Holdings and Acushnet Holdings go up and down completely randomly.

Pair Corralation between OneSpaWorld Holdings and Acushnet Holdings

Considering the 90-day investment horizon OneSpaWorld Holdings is expected to generate 1.17 times more return on investment than Acushnet Holdings. However, OneSpaWorld Holdings is 1.17 times more volatile than Acushnet Holdings Corp. It trades about 0.01 of its potential returns per unit of risk. Acushnet Holdings Corp is currently generating about -0.06 per unit of risk. If you would invest  1,899  in OneSpaWorld Holdings on November 28, 2024 and sell it today you would lose (16.00) from holding OneSpaWorld Holdings or give up 0.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

OneSpaWorld Holdings  vs.  Acushnet Holdings Corp

OneSpaWorld Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days OneSpaWorld Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, OneSpaWorld Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Acushnet Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acushnet Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's essential indicators 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 OneSpaWorld Holdings and Acushnet Holdings

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

The idea behind OneSpaWorld Holdings and Acushnet Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.