Correlation Between Meta CDR and Onex Corp

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

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

Diversification Opportunities for Meta CDR and Onex Corp

0.42

Correlation Coefficient

Meta CDR  Onex Corp

Very weak diversification

The 3 months correlation between Meta and Onex is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Meta CDR and Onex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onex Corp and Meta CDR 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 Meta CDR are associated (or correlated) with Onex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onex Corp has no effect on the direction of Meta CDR i.e., Meta CDR and Onex Corp go up and down completely randomly.

Pair Corralation between Meta CDR and Onex Corp

Assuming the 90 days trading horizon Meta CDR is expected to generate 2.23 times less return on investment than Onex Corp. In addition to that, Meta CDR is 1.67 times more volatile than Onex Corp. It trades about 0.04 of its total potential returns per unit of risk. Onex Corp is currently generating about 0.15 per unit of volatility. If you would invest  11,190  in Onex Corp on July 1, 2025 and sell it today you would earn a total of  1,124  from holding Onex Corp or generate 10.04% return on investment over 90 days.

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

Meta CDR  vs.  Onex Corp

Meta CDR

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Meta CDR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Meta CDR is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Onex Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Onex Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Onex Corp may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Meta CDR and Onex Corp

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

The idea behind Meta CDR and Onex Corp 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.