Correlation Between Onxeo SA and M/I Homes
Can any of the company-specific risk be diversified away by investing in both Onxeo SA and M/I Homes 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 Onxeo SA and M/I Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onxeo SA and MI Homes, you can compare the effects of market volatilities on Onxeo SA and M/I Homes 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 Onxeo SA with a short position of M/I Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onxeo SA and M/I Homes.
Diversification Opportunities for Onxeo SA and M/I Homes
Significant diversification
The 3 months correlation between Onxeo and M/I is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Onxeo SA and MI Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M/I Homes and Onxeo SA 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 Onxeo SA are associated (or correlated) with M/I Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M/I Homes has no effect on the direction of Onxeo SA i.e., Onxeo SA and M/I Homes go up and down completely randomly.
Pair Corralation between Onxeo SA and M/I Homes
Assuming the 90 days horizon Onxeo SA is expected to under-perform the M/I Homes. In addition to that, Onxeo SA is 2.77 times more volatile than MI Homes. It trades about -0.02 of its total potential returns per unit of risk. MI Homes is currently generating about 0.22 per unit of volatility. If you would invest 13,755 in MI Homes on September 3, 2024 and sell it today you would earn a total of 1,720 from holding MI Homes or generate 12.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Onxeo SA vs. MI Homes
Performance |
Timeline |
Onxeo SA |
M/I Homes |
Onxeo SA and M/I Homes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Onxeo SA and M/I Homes
The main advantage of trading using opposite Onxeo SA and M/I Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onxeo SA position performs unexpectedly, M/I Homes 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 M/I Homes will offset losses from the drop in M/I Homes' long position.Onxeo SA vs. Alaska Air Group | Onxeo SA vs. FORWARD AIR P | Onxeo SA vs. PARKEN Sport Entertainment | Onxeo SA vs. Fair Isaac Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Stocks Directory Find actively traded stocks across global markets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |