Correlation Between OAKTRSPECLENDNEW and GLOBUS MEDICAL

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Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and GLOBUS MEDICAL 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 OAKTRSPECLENDNEW and GLOBUS MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and GLOBUS MEDICAL A, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and GLOBUS MEDICAL 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 OAKTRSPECLENDNEW with a short position of GLOBUS MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and GLOBUS MEDICAL.

Diversification Opportunities for OAKTRSPECLENDNEW and GLOBUS MEDICAL

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between OAKTRSPECLENDNEW and GLOBUS is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and GLOBUS MEDICAL go up and down completely randomly.

Pair Corralation between OAKTRSPECLENDNEW and GLOBUS MEDICAL

Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to generate 7.8 times less return on investment than GLOBUS MEDICAL. But when comparing it to its historical volatility, OAKTRSPECLENDNEW is 4.13 times less risky than GLOBUS MEDICAL. It trades about 0.17 of its potential returns per unit of risk. GLOBUS MEDICAL A is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  5,000  in GLOBUS MEDICAL A on August 19, 2025 and sell it today you would earn a total of  2,200  from holding GLOBUS MEDICAL A or generate 44.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

OAKTRSPECLENDNEW  vs.  GLOBUS MEDICAL A

 Performance 
       Timeline  
OAKTRSPECLENDNEW 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in OAKTRSPECLENDNEW are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, OAKTRSPECLENDNEW is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
GLOBUS MEDICAL A 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GLOBUS MEDICAL A are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, GLOBUS MEDICAL exhibited solid returns over the last few months and may actually be approaching a breakup point.

OAKTRSPECLENDNEW and GLOBUS MEDICAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OAKTRSPECLENDNEW and GLOBUS MEDICAL

The main advantage of trading using opposite OAKTRSPECLENDNEW and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, GLOBUS MEDICAL 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.
The idea behind OAKTRSPECLENDNEW and GLOBUS MEDICAL A 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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