Correlation Between Cabana Target and Oshidori International

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

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

Diversification Opportunities for Cabana Target and Oshidori International

0.0

Correlation Coefficient

Cabana Target  Oshidori International

Pay attention - limited upside

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

Pair Corralation between Cabana Target and Oshidori International

If you would invest  2,162  in Cabana Target Drawdown on December 20, 2024 and sell it today you would earn a total of  64.00  from holding Cabana Target Drawdown or generate 2.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Cabana Target Drawdown  vs.  Oshidori International Holding

Cabana Target Drawdown

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cabana Target Drawdown are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Cabana Target is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cabana Target and Oshidori International

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

The idea behind Cabana Target Drawdown and Oshidori International Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.