Correlation Between Amesite Operating and Oneconnect Financial

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

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

Diversification Opportunities for Amesite Operating and Oneconnect Financial

0.39

Correlation Coefficient

Amesite Operating  Oneconnect Financial

Weak diversification

The 3 months correlation between Amesite and Oneconnect is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Amesite Operating Co and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial and Amesite Operating 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 Amesite Operating Co 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 Amesite Operating i.e., Amesite Operating and Oneconnect Financial go up and down completely randomly.

Pair Corralation between Amesite Operating and Oneconnect Financial

Given the investment horizon of 90 days Amesite Operating Co is expected to generate 0.96 times more return on investment than Oneconnect Financial. However, Amesite Operating Co is 1.04 times less risky than Oneconnect Financial. It trades about 0.03 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.01 per unit of risk. If you would invest  263.00  in Amesite Operating Co on September 4, 2024 and sell it today you would earn a total of  18.00  from holding Amesite Operating Co or generate 6.84% return on investment over 90 days.

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

Amesite Operating Co  vs.  Oneconnect Financial Technolog

Amesite Operating

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amesite Operating Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Amesite Operating unveiled solid returns over the last few months and may actually be approaching a breakup point.

Oneconnect Financial

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oneconnect Financial Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Oneconnect Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amesite Operating and Oneconnect Financial

The main advantage of trading using opposite Amesite Operating and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amesite Operating 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 Amesite Operating Co 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.