Correlation Between OM Holdings and Cobalt Blue
Can any of the company-specific risk be diversified away by investing in both OM Holdings and Cobalt Blue 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 OM Holdings and Cobalt Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OM Holdings Limited and Cobalt Blue Holdings, you can compare the effects of market volatilities on OM Holdings and Cobalt Blue 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 OM Holdings with a short position of Cobalt Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of OM Holdings and Cobalt Blue.
Diversification Opportunities for OM Holdings and Cobalt Blue
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMHLF and Cobalt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OM Holdings Limited and Cobalt Blue Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cobalt Blue Holdings and OM Holdings 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 OM Holdings Limited are associated (or correlated) with Cobalt Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cobalt Blue Holdings has no effect on the direction of OM Holdings i.e., OM Holdings and Cobalt Blue go up and down completely randomly.
Pair Corralation between OM Holdings and Cobalt Blue
Assuming the 90 days horizon OM Holdings Limited is expected to under-perform the Cobalt Blue. But the pink sheet apears to be less risky and, when comparing its historical volatility, OM Holdings Limited is 4.3 times less risky than Cobalt Blue. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Cobalt Blue Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Cobalt Blue Holdings on November 2, 2024 and sell it today you would lose (35.08) from holding Cobalt Blue Holdings or give up 89.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
OM Holdings Limited vs. Cobalt Blue Holdings
Performance |
| Timeline |
| OM Holdings Limited |
| Cobalt Blue Holdings |
OM Holdings and Cobalt Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OM Holdings and Cobalt Blue
The main advantage of trading using opposite OM Holdings and Cobalt Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OM Holdings position performs unexpectedly, Cobalt Blue 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 Cobalt Blue will offset losses from the drop in Cobalt Blue's long position.| OM Holdings vs. Sherritt International | OM Holdings vs. AMG Advanced Metallurgical | OM Holdings vs. Metals X Limited | OM Holdings vs. Interra Copper Corp |
| Cobalt Blue vs. Aurelia Metals Limited | Cobalt Blue vs. Centaurus Metals Limited | Cobalt Blue vs. Artemis Resources | Cobalt Blue vs. Ascendant Resources |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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