Correlation Between AiMedia Technologies and OOhMedia
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and OOhMedia 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 OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and oOhMedia, you can compare the effects of market volatilities on AiMedia Technologies and OOhMedia 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 OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and OOhMedia.
Diversification Opportunities for AiMedia Technologies and OOhMedia
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiMedia and OOhMedia is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia 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 OOhMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of oOhMedia has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and OOhMedia go up and down completely randomly.
Pair Corralation between AiMedia Technologies and OOhMedia
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the OOhMedia. In addition to that, AiMedia Technologies is 4.48 times more volatile than oOhMedia. It trades about -0.1 of its total potential returns per unit of risk. oOhMedia is currently generating about 0.13 per unit of volatility. If you would invest 120.00 in oOhMedia on August 30, 2024 and sell it today you would earn a total of 4.00 from holding oOhMedia or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. oOhMedia
Performance |
| Timeline |
| AiMedia Technologies |
| oOhMedia |
AiMedia Technologies and OOhMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and OOhMedia
The main advantage of trading using opposite AiMedia Technologies and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, OOhMedia 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 OOhMedia will offset losses from the drop in OOhMedia's long position.| AiMedia Technologies vs. Aneka Tambang Tbk | AiMedia Technologies vs. Unibail Rodamco Westfield SE | AiMedia Technologies vs. Macquarie Group | AiMedia Technologies vs. Commonwealth Bank |
| OOhMedia vs. Macquarie Group | OOhMedia vs. Macquarie Group Ltd | OOhMedia vs. Commonwealth Bank | OOhMedia vs. Rio Tinto |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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