Two Equities Correlation Analysis
Specify exactly 2 symbols:
OPCE.TA
Add Two Equities
This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for OPC Energy and NYSE Composite
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OPC and NYSE is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding OPC Energy and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and OPC Energy 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 OPC Energy are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of OPC Energy i.e., OPC Energy and NYSE Composite go up and down completely randomly.
Pair Corralation between OPC Energy and NYSE Composite
Assuming the 90 days trading horizon OPC Energy is expected to generate 3.89 times more return on investment than NYSE Composite. However, OPC Energy is 3.89 times more volatile than NYSE Composite. It trades about 0.04 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.31 per unit of risk. If you would invest 265,000 in OPC Energy on January 20, 2024 and sell it today you would earn a total of 3,600 from holding OPC Energy or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
OPC Energy vs. NYSE Composite
Performance |
| Timeline |
OPC Energy and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
OPC Energy
Pair trading matchups for OPC Energy
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with OPC Energy and NYSE Composite
The main advantage of trading using opposite OPC Energy and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPC Energy position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| OPC Energy vs. Doral Group Renewable | OPC Energy vs. Elbit Systems | OPC Energy vs. Electreon Wireless | OPC Energy vs. Delek Group |
| NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Shake Shack |
Check out your portfolio center.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 CEOs Directory module to screen CEOs from public companies around the world.
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