Correlation Between Oxurion NV and Ascencio

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

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

Diversification Opportunities for Oxurion NV and Ascencio

0.75

Correlation Coefficient

Oxurion NV  Ascencio

Poor diversification

The 3 months correlation between Oxurion and Ascencio is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Ascencio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascencio and Oxurion NV 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 Oxurion NV are associated (or correlated) with Ascencio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascencio has no effect on the direction of Oxurion NV i.e., Oxurion NV and Ascencio go up and down completely randomly.

Pair Corralation between Oxurion NV and Ascencio

Assuming the 90 days trading horizon Oxurion NV is expected to under-perform the Ascencio. In addition to that, Oxurion NV is 4.6 times more volatile than Ascencio. It trades about -0.22 of its total potential returns per unit of risk. Ascencio is currently generating about -0.07 per unit of volatility. If you would invest  4,960  in Ascencio on September 14, 2024 and sell it today you would lose (245.00) from holding Ascencio or give up 4.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Oxurion NV  vs.  Ascencio

Oxurion NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oxurion NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Ascencio

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Oxurion NV and Ascencio

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

The idea behind Oxurion NV and Ascencio 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.