Pair Correlation Between MSAD Insurance and Otis Gold

This module allows you to analyze existing cross correlation between MSAD Insurance Group Holdings Inc and Otis Gold Corp. You can compare the effects of market volatilities on MSAD Insurance and Otis Gold 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 MSAD Insurance with a short position of Otis Gold. See also your portfolio center. Please also check ongoing floating volatility patterns of MSAD Insurance and Otis Gold.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 MSAD Insurance Group Holdings   vs   Otis Gold Corp
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, MSAD Insurance Group Holdings Inc is expected to under-perform the Otis Gold. But the stock apears to be less risky and, when comparing its historical volatility, MSAD Insurance Group Holdings Inc is 2.24 times less risky than Otis Gold. The stock trades about -0.31 of its potential returns per unit of risk. The Otis Gold Corp is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  19.00  in Otis Gold Corp on January 23, 2018 and sell it today you would lose (1.38)  from holding Otis Gold Corp or give up 7.26% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between MSAD Insurance and Otis Gold
0.63

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy72.73%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

MSAD Insurance Group

  
0 

Risk-Adjusted Performance

Over the last 30 days MSAD Insurance Group Holdings Inc has generated negative risk-adjusted returns adding no value to investors with long positions.