Correlation Between Oxurion NV and HP

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

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

Diversification Opportunities for Oxurion NV and HP

-0.84

Correlation Coefficient

Oxurion NV  HP

Pay attention - limited upside

The 3 months correlation between Oxurion and HP is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and HP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HP Inc and Oxurion NV 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 Oxurion NV are associated (or correlated) with HP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HP Inc has no effect on the direction of Oxurion NV i.e., Oxurion NV and HP go up and down completely randomly.

Pair Corralation between Oxurion NV and HP

Assuming the 90 days horizon Oxurion NV is expected to under-perform the HP. In addition to that, Oxurion NV is 4.83 times more volatile than HP Inc. It trades about -0.22 of its total potential returns per unit of risk. HP Inc is currently generating about 0.03 per unit of volatility. If you would invest  3,224  in HP Inc on September 2, 2024 and sell it today you would earn a total of  76.00  from holding HP Inc or generate 2.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	68.18%
Values	Daily Returns

Oxurion NV  vs.  HP Inc

Oxurion NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oxurion NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

HP Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HP Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, HP is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Oxurion NV and HP

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

The idea behind Oxurion NV and HP Inc 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.