Correlation Between Oasis Hotel and LOCKHEED

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

By analyzing existing cross correlation between Oasis Hotel Resort and LOCKHEED MARTIN P, you can compare the effects of market volatilities on Oasis Hotel and LOCKHEED 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 Oasis Hotel with a short position of LOCKHEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and LOCKHEED.

Diversification Opportunities for Oasis Hotel and LOCKHEED

0.0

Correlation Coefficient

Oasis Hotel  LOCKHEED

Pay attention - limited upside

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

Pair Corralation between Oasis Hotel and LOCKHEED

If you would invest  0.02  in Oasis Hotel Resort on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Oasis Hotel Resort or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	65.63%
Values	Daily Returns

Oasis Hotel Resort  vs.  LOCKHEED MARTIN P

Oasis Hotel Resort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oasis Hotel Resort has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Oasis Hotel is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

LOCKHEED MARTIN P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LOCKHEED MARTIN P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for LOCKHEED MARTIN P investors.

Pair Trading with Oasis Hotel and LOCKHEED

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

The idea behind Oasis Hotel Resort and LOCKHEED MARTIN P 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.