Correlation Between AiMedia Technologies and Oneview Healthcare
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Oneview 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 Oneview 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 Oneview Healthcare PLC, you can compare the effects of market volatilities on AiMedia Technologies and Oneview 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 Oneview Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Oneview Healthcare.
Diversification Opportunities for AiMedia Technologies and Oneview Healthcare
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AiMedia and Oneview is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Oneview Healthcare PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneview Healthcare PLC 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 Oneview Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneview Healthcare PLC has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Oneview Healthcare go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Oneview Healthcare
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 0.98 times more return on investment than Oneview Healthcare. However, AiMedia Technologies is 1.02 times less risky than Oneview Healthcare. It trades about 0.09 of its potential returns per unit of risk. Oneview Healthcare PLC is currently generating about 0.05 per unit of risk. If you would invest 31.00 in AiMedia Technologies on August 29, 2024 and sell it today you would earn a total of 46.00 from holding AiMedia Technologies or generate 148.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Oneview Healthcare PLC
Performance |
| Timeline |
| AiMedia Technologies |
| Oneview Healthcare PLC |
AiMedia Technologies and Oneview Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Oneview Healthcare
The main advantage of trading using opposite AiMedia Technologies and Oneview Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Oneview 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 Oneview Healthcare will offset losses from the drop in Oneview Healthcare's long position.| AiMedia Technologies vs. PVW Resources | AiMedia Technologies vs. Woolworths | AiMedia Technologies vs. Wesfarmers | AiMedia Technologies vs. Coles Group |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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