Correlation Between Carnegie Clean and OOhMedia
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean 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 Carnegie Clean and OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and oOhMedia, you can compare the effects of market volatilities on Carnegie Clean 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 Carnegie Clean with a short position of OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and OOhMedia.
Diversification Opportunities for Carnegie Clean and OOhMedia
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carnegie and OOhMedia is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia and Carnegie Clean 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 Carnegie Clean Energy 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 Carnegie Clean i.e., Carnegie Clean and OOhMedia go up and down completely randomly.
Pair Corralation between Carnegie Clean and OOhMedia
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to under-perform the OOhMedia. In addition to that, Carnegie Clean is 1.82 times more volatile than oOhMedia. It trades about -0.04 of its total potential returns per unit of risk. oOhMedia is currently generating about -0.05 per unit of volatility. If you would invest 156.00 in oOhMedia on October 16, 2024 and sell it today you would lose (39.00) from holding oOhMedia or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. oOhMedia
Performance |
| Timeline |
| Carnegie Clean Energy |
| oOhMedia |
Carnegie Clean and OOhMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and OOhMedia
The main advantage of trading using opposite Carnegie Clean and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean 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.| Carnegie Clean vs. Evolution Mining | Carnegie Clean vs. Hansen Technologies | Carnegie Clean vs. Metro Mining | Carnegie Clean vs. WiseTech Global Limited |
| OOhMedia vs. MetalsGrove Mining | OOhMedia vs. Perseus Mining | OOhMedia vs. Carnegie Clean Energy | OOhMedia vs. Richmond Vanadium Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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