Correlation Between Oriental Culture and Liquid Media
Can any of the company-specific risk be diversified away by investing in both Oriental Culture and Liquid Media 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 Oriental Culture and Liquid Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and Liquid Media Group, you can compare the effects of market volatilities on Oriental Culture and Liquid Media 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 Oriental Culture with a short position of Liquid Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and Liquid Media.
Diversification Opportunities for Oriental Culture and Liquid Media
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oriental and Liquid is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and Liquid Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liquid Media Group and Oriental Culture 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 Oriental Culture Holding are associated (or correlated) with Liquid Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liquid Media Group has no effect on the direction of Oriental Culture i.e., Oriental Culture and Liquid Media go up and down completely randomly.
Pair Corralation between Oriental Culture and Liquid Media
Considering the 90-day investment horizon Oriental Culture Holding is expected to generate 0.63 times more return on investment than Liquid Media. However, Oriental Culture Holding is 1.59 times less risky than Liquid Media. It trades about 0.0 of its potential returns per unit of risk. Liquid Media Group is currently generating about -0.02 per unit of risk. If you would invest 350.00 in Oriental Culture Holding on August 27, 2024 and sell it today you would lose (222.00) from holding Oriental Culture Holding or give up 63.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.71% |
| Values | Daily Returns |
Oriental Culture Holding vs. Liquid Media Group
Performance |
| Timeline |
| Oriental Culture Holding |
| Liquid Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oriental Culture and Liquid Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and Liquid Media
The main advantage of trading using opposite Oriental Culture and Liquid Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture position performs unexpectedly, Liquid Media 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 Liquid Media will offset losses from the drop in Liquid Media's long position.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
| Liquid Media vs. GameOn Entertainment Technologies | Liquid Media vs. NEXON Co | Liquid Media vs. i3 Interactive | Liquid Media vs. Blue Hat Interactive |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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