Correlation Between Oxbridge Acquisition and Minority Equality

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Can any of the company-specific risk be diversified away by investing in both Oxbridge Acquisition and Minority Equality 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 Oxbridge Acquisition and Minority Equality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxbridge Acquisition Corp and Minority Equality Opportunities, you can compare the effects of market volatilities on Oxbridge Acquisition and Minority Equality 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 Oxbridge Acquisition with a short position of Minority Equality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge Acquisition and Minority Equality.

Diversification Opportunities for Oxbridge Acquisition and Minority Equality

-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Oxbridge and Minority is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Acquisition Corp and Minority Equality Opportunitie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minority Equality and Oxbridge Acquisition 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 Oxbridge Acquisition Corp are associated (or correlated) with Minority Equality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minority Equality has no effect on the direction of Oxbridge Acquisition i.e., Oxbridge Acquisition and Minority Equality go up and down completely randomly.

Pair Corralation between Oxbridge Acquisition and Minority Equality

Given the investment horizon of 90 days Oxbridge Acquisition is expected to generate 93.97 times less return on investment than Minority Equality. But when comparing it to its historical volatility, Oxbridge Acquisition Corp is 34.24 times less risky than Minority Equality. It trades about 0.11 of its potential returns per unit of risk. Minority Equality Opportunities is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  3.10  in Minority Equality Opportunities on October 12, 2024 and sell it today you would earn a total of  4.92  from holding Minority Equality Opportunities or generate 158.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy26.98%
ValuesDaily Returns

Oxbridge Acquisition Corp  vs.  Minority Equality Opportunitie

 Performance 
       Timeline  
Oxbridge Acquisition Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oxbridge Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Oxbridge Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Minority Equality 

Risk-Adjusted Performance

0 of 100

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

Oxbridge Acquisition and Minority Equality Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oxbridge Acquisition and Minority Equality

The main advantage of trading using opposite Oxbridge Acquisition and Minority Equality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge Acquisition position performs unexpectedly, Minority Equality 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 Minority Equality will offset losses from the drop in Minority Equality's long position.
The idea behind Oxbridge Acquisition Corp and Minority Equality Opportunities 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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