Correlation Between Oshidori International and Eventide Gilead

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

By analyzing existing cross correlation between Oshidori International Holdings and Eventide Gilead Fund, you can compare the effects of market volatilities on Oshidori International and Eventide Gilead 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 Oshidori International with a short position of Eventide Gilead. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and Eventide Gilead.

Diversification Opportunities for Oshidori International and Eventide Gilead

0.54

Correlation Coefficient

Oshidori International  Eventide Gilead

Very weak diversification

The 3 months correlation between Oshidori and EVENTIDE is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and Eventide Gilead Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Gilead and Oshidori International 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 Oshidori International Holdings are associated (or correlated) with Eventide Gilead. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Gilead has no effect on the direction of Oshidori International i.e., Oshidori International and Eventide Gilead go up and down completely randomly.

Pair Corralation between Oshidori International and Eventide Gilead

Assuming the 90 days horizon Oshidori International Holdings is expected to generate 120.82 times more return on investment than Eventide Gilead. However, Oshidori International is 120.82 times more volatile than Eventide Gilead Fund. It trades about 0.13 of its potential returns per unit of risk. Eventide Gilead Fund is currently generating about 0.11 per unit of risk. If you would invest  0.07  in Oshidori International Holdings on August 30, 2024 and sell it today you would earn a total of  0.93  from holding Oshidori International Holdings or generate 1328.57% return on investment over 90 days.

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

Oshidori International Holding  vs.  Eventide Gilead Fund

Oshidori International

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oshidori International Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Oshidori International reported solid returns over the last few months and may actually be approaching a breakup point.

Eventide Gilead

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eventide Gilead Fund are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Eventide Gilead may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Oshidori International and Eventide Gilead

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

The idea behind Oshidori International Holdings and Eventide Gilead Fund 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.