Correlation Between Duos Technologies and Oneconnect Financial

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

By analyzing existing cross correlation between Duos Technologies Group and Oneconnect Financial Technology, you can compare the effects of market volatilities on Duos Technologies and Oneconnect Financial 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 Duos Technologies with a short position of Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duos Technologies and Oneconnect Financial.

Diversification Opportunities for Duos Technologies and Oneconnect Financial

0.29

Correlation Coefficient

Duos Technologies  Oneconnect Financial

Modest diversification

The 3 months correlation between Duos and Oneconnect is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Duos Technologies Group and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial and Duos Technologies 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 Duos Technologies Group are associated (or correlated) with Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of Duos Technologies i.e., Duos Technologies and Oneconnect Financial go up and down completely randomly.

Pair Corralation between Duos Technologies and Oneconnect Financial

Given the investment horizon of 90 days Duos Technologies Group is expected to under-perform the Oneconnect Financial. In addition to that, Duos Technologies is 1.61 times more volatile than Oneconnect Financial Technology. It trades about -0.06 of its total potential returns per unit of risk. Oneconnect Financial Technology is currently generating about -0.09 per unit of volatility. If you would invest  216.00  in Oneconnect Financial Technology on January 20, 2024 and sell it today you would lose (34.00) from holding Oneconnect Financial Technology or give up 15.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Duos Technologies Group  vs.  Oneconnect Financial Technolog

Duos Technologies

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Duos Technologies Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Duos Technologies is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Oneconnect Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oneconnect Financial Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Duos Technologies and Oneconnect Financial

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

The idea behind Duos Technologies Group and Oneconnect Financial Technology 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.