Correlation Between Ocumetics Technology and Maple Peak

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

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

Diversification Opportunities for Ocumetics Technology and Maple Peak

0.0

Correlation Coefficient

Ocumetics Technology  Maple Peak

Pay attention - limited upside

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

Pair Corralation between Ocumetics Technology and Maple Peak

Assuming the 90 days horizon Ocumetics Technology is expected to generate 46.43 times less return on investment than Maple Peak. But when comparing it to its historical volatility, Ocumetics Technology Corp is 3.11 times less risky than Maple Peak. It trades about 0.0 of its potential returns per unit of risk. Maple Peak Investments is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1.50  in Maple Peak Investments on September 12, 2024 and sell it today you would lose (0.50) from holding Maple Peak Investments or give up 33.33% of portfolio value over 90 days.

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

Ocumetics Technology Corp  vs.  Maple Peak Investments

Ocumetics Technology Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ocumetics Technology Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Ocumetics Technology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Maple Peak Investments

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Ocumetics Technology and Maple Peak

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

The idea behind Ocumetics Technology Corp and Maple Peak Investments 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.