Correlation Between OssDsign and MilDef Group
Can any of the company-specific risk be diversified away by investing in both OssDsign and MilDef Group 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 OssDsign and MilDef Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OssDsign AB and MilDef Group AB, you can compare the effects of market volatilities on OssDsign and MilDef Group 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 OssDsign with a short position of MilDef Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OssDsign and MilDef Group.
Diversification Opportunities for OssDsign and MilDef Group
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OssDsign and MilDef is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding OssDsign AB and MilDef Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MilDef Group AB and OssDsign 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 OssDsign AB are associated (or correlated) with MilDef Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MilDef Group AB has no effect on the direction of OssDsign i.e., OssDsign and MilDef Group go up and down completely randomly.
Pair Corralation between OssDsign and MilDef Group
Assuming the 90 days trading horizon OssDsign AB is expected to generate 0.83 times more return on investment than MilDef Group. However, OssDsign AB is 1.2 times less risky than MilDef Group. It trades about 0.1 of its potential returns per unit of risk. MilDef Group AB is currently generating about -0.14 per unit of risk. If you would invest 1,300 in OssDsign AB on April 25, 2025 and sell it today you would earn a total of 252.00 from holding OssDsign AB or generate 19.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OssDsign AB vs. MilDef Group AB
Performance |
Timeline |
OssDsign AB |
MilDef Group AB |
OssDsign and MilDef Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OssDsign and MilDef Group
The main advantage of trading using opposite OssDsign and MilDef Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OssDsign position performs unexpectedly, MilDef Group 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 MilDef Group will offset losses from the drop in MilDef Group's long position.OssDsign vs. Bonesupport Holding AB | OssDsign vs. Episurf Medical AB | OssDsign vs. Alligator Bioscience AB | OssDsign vs. Q linea AB |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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