Correlation Between Cxj Group and OReilly Automotive

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

By analyzing existing cross correlation between Cxj Group Co and OReilly Automotive, you can compare the effects of market volatilities on Cxj Group and OReilly Automotive 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 Cxj Group with a short position of OReilly Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cxj Group and OReilly Automotive.

Diversification Opportunities for Cxj Group and OReilly Automotive

-0.44

Correlation Coefficient

Cxj Group  OReilly Automotive

Very good diversification

The 3 months correlation between Cxj and OReilly is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cxj Group Co and OReilly Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OReilly Automotive and Cxj Group 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 Cxj Group Co are associated (or correlated) with OReilly Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OReilly Automotive has no effect on the direction of Cxj Group i.e., Cxj Group and OReilly Automotive go up and down completely randomly.

Pair Corralation between Cxj Group and OReilly Automotive

If you would invest  0.00  in Cxj Group Co on January 26, 2024 and sell it today you would earn a total of  0.00  from holding Cxj Group Co or generate 0.0% return on investment over 90 days.

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

Cxj Group Co  vs.  OReilly Automotive

Cxj Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cxj Group Co has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in May 2024. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

OReilly Automotive

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OReilly Automotive are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, OReilly Automotive may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Cxj Group and OReilly Automotive

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

The idea behind Cxj Group Co and OReilly Automotive 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.