Correlation Between AiMedia Technologies and Oceania Healthcare
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Oceania Healthcare 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 AiMedia Technologies and Oceania Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Oceania Healthcare, you can compare the effects of market volatilities on AiMedia Technologies and Oceania Healthcare 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 AiMedia Technologies with a short position of Oceania Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Oceania Healthcare.
Diversification Opportunities for AiMedia Technologies and Oceania Healthcare
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiMedia and Oceania is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Oceania Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceania Healthcare and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Oceania Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceania Healthcare has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Oceania Healthcare go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Oceania Healthcare
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the Oceania Healthcare. In addition to that, AiMedia Technologies is 1.21 times more volatile than Oceania Healthcare. It trades about -0.02 of its total potential returns per unit of risk. Oceania Healthcare is currently generating about 0.04 per unit of volatility. If you would invest 64.00 in Oceania Healthcare on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Oceania Healthcare or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Oceania Healthcare
Performance |
| Timeline |
| AiMedia Technologies |
| Oceania Healthcare |
AiMedia Technologies and Oceania Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Oceania Healthcare
The main advantage of trading using opposite AiMedia Technologies and Oceania Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Oceania Healthcare 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 Oceania Healthcare will offset losses from the drop in Oceania Healthcare's long position.| AiMedia Technologies vs. iShares Global Healthcare | AiMedia Technologies vs. Australian Dairy Farms | AiMedia Technologies vs. Adriatic Metals Plc | AiMedia Technologies vs. Australian Agricultural |
| Oceania Healthcare vs. Westpac Banking | Oceania Healthcare vs. iShares Global Healthcare | Oceania Healthcare vs. Australian Dairy Farms | Oceania Healthcare vs. Adriatic Metals Plc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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