Correlation Between Ocugen and Hudson Global

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

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

Diversification Opportunities for Ocugen and Hudson Global

0.81

Correlation Coefficient

Ocugen  Hudson Global

Very poor diversification

The 3 months correlation between Ocugen and Hudson is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ocugen Inc and Hudson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Global and Ocugen 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 Ocugen Inc are associated (or correlated) with Hudson Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Global has no effect on the direction of Ocugen i.e., Ocugen and Hudson Global go up and down completely randomly.

Pair Corralation between Ocugen and Hudson Global

Given the investment horizon of 90 days Ocugen Inc is expected to generate 4.0 times more return on investment than Hudson Global. However, Ocugen is 4.0 times more volatile than Hudson Global. It trades about 0.19 of its potential returns per unit of risk. Hudson Global is currently generating about 0.1 per unit of risk. If you would invest  55.00  in Ocugen Inc on January 24, 2024 and sell it today you would earn a total of  69.00  from holding Ocugen Inc or generate 125.45% return on investment over 90 days.

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

Ocugen Inc  vs.  Hudson Global

Ocugen Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ocugen Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Ocugen displayed solid returns over the last few months and may actually be approaching a breakup point.

Hudson Global

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hudson Global are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Hudson Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ocugen and Hudson Global

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

The idea behind Ocugen Inc and Hudson Global 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.