Correlation Between ONWARD MEDICAL and CAPITAL ONE

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

By analyzing existing cross correlation between ONWARD MEDICAL BV and CAPITAL ONE FIN, you can compare the effects of market volatilities on ONWARD MEDICAL and CAPITAL ONE 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 ONWARD MEDICAL with a short position of CAPITAL ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONWARD MEDICAL and CAPITAL ONE.

Diversification Opportunities for ONWARD MEDICAL and CAPITAL ONE

0.57

Correlation Coefficient

ONWARD MEDICAL  CAPITAL ONE

Very weak diversification

The 3 months correlation between ONWARD and CAPITAL is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ONWARD MEDICAL BV and CAPITAL ONE FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FIN and ONWARD MEDICAL 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 ONWARD MEDICAL BV are associated (or correlated) with CAPITAL ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FIN has no effect on the direction of ONWARD MEDICAL i.e., ONWARD MEDICAL and CAPITAL ONE go up and down completely randomly.

Pair Corralation between ONWARD MEDICAL and CAPITAL ONE

Assuming the 90 days horizon ONWARD MEDICAL is expected to generate 2.47 times less return on investment than CAPITAL ONE. In addition to that, ONWARD MEDICAL is 1.36 times more volatile than CAPITAL ONE FIN. It trades about 0.04 of its total potential returns per unit of risk. CAPITAL ONE FIN is currently generating about 0.14 per unit of volatility. If you would invest  1,281  in CAPITAL ONE FIN on April 25, 2025 and sell it today you would earn a total of  329.00  from holding CAPITAL ONE FIN or generate 25.68% return on investment over 90 days.

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

ONWARD MEDICAL BV  vs.  CAPITAL ONE FIN

ONWARD MEDICAL BV

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ONWARD MEDICAL BV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ONWARD MEDICAL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CAPITAL ONE FIN

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CAPITAL ONE FIN are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CAPITAL ONE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ONWARD MEDICAL and CAPITAL ONE

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

The idea behind ONWARD MEDICAL BV and CAPITAL ONE FIN 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.