Correlation Between IShares Global and OOhMedia
Can any of the company-specific risk be diversified away by investing in both IShares Global 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 IShares Global and OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Healthcare and oOhMedia, you can compare the effects of market volatilities on IShares Global 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 IShares Global with a short position of OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and OOhMedia.
Diversification Opportunities for IShares Global and OOhMedia
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and OOhMedia is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Healthcare and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia and IShares Global 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 iShares Global Healthcare 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 IShares Global i.e., IShares Global and OOhMedia go up and down completely randomly.
Pair Corralation between IShares Global and OOhMedia
Assuming the 90 days trading horizon iShares Global Healthcare is expected to generate 0.32 times more return on investment than OOhMedia. However, iShares Global Healthcare is 3.1 times less risky than OOhMedia. It trades about 0.05 of its potential returns per unit of risk. oOhMedia is currently generating about 0.0 per unit of risk. If you would invest 11,739 in iShares Global Healthcare on October 15, 2024 and sell it today you would earn a total of 2,291 from holding iShares Global Healthcare or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Healthcare vs. oOhMedia
Performance |
| Timeline |
| iShares Global Healthcare |
| oOhMedia |
IShares Global and OOhMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and OOhMedia
The main advantage of trading using opposite IShares Global and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global 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.| IShares Global vs. iShares MSCI Emerging | IShares Global vs. iShares Global Aggregate | IShares Global vs. iShares CoreSP MidCap | IShares Global vs. iShares SP 500 |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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