Correlation Between Hour Loop and Ozon Holdings

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

By analyzing existing cross correlation between Hour Loop and Ozon Holdings PLC, you can compare the effects of market volatilities on Hour Loop and Ozon Holdings 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 Hour Loop with a short position of Ozon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hour Loop and Ozon Holdings.

Diversification Opportunities for Hour Loop and Ozon Holdings

0.0

Correlation Coefficient

Hour Loop  Ozon Holdings

Pay attention - limited upside

The 3 months correlation between Hour and Ozon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hour Loop and Ozon Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ozon Holdings PLC and Hour Loop 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 Hour Loop are associated (or correlated) with Ozon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ozon Holdings PLC has no effect on the direction of Hour Loop i.e., Hour Loop and Ozon Holdings go up and down completely randomly.

Pair Corralation between Hour Loop and Ozon Holdings

If you would invest  130.00  in Hour Loop on September 13, 2024 and sell it today you would earn a total of  34.00  from holding Hour Loop or generate 26.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.4%
Values	Daily Returns

Hour Loop  vs.  Ozon Holdings PLC

Hour Loop

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hour Loop are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Hour Loop reported solid returns over the last few months and may actually be approaching a breakup point.

Ozon Holdings PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ozon Holdings PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ozon Holdings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Hour Loop and Ozon Holdings

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

The idea behind Hour Loop and Ozon Holdings PLC 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.