Correlation Between OOhMedia and Black Rock
Can any of the company-specific risk be diversified away by investing in both OOhMedia and Black Rock 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 OOhMedia and Black Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Black Rock Mining, you can compare the effects of market volatilities on OOhMedia and Black Rock 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 OOhMedia with a short position of Black Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Black Rock.
Diversification Opportunities for OOhMedia and Black Rock
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OOhMedia and Black is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Black Rock Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Rock Mining and OOhMedia 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 oOhMedia are associated (or correlated) with Black Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Rock Mining has no effect on the direction of OOhMedia i.e., OOhMedia and Black Rock go up and down completely randomly.
Pair Corralation between OOhMedia and Black Rock
Assuming the 90 days trading horizon oOhMedia is expected to under-perform the Black Rock. But the stock apears to be less risky and, when comparing its historical volatility, oOhMedia is 2.73 times less risky than Black Rock. The stock trades about -0.1 of its potential returns per unit of risk. The Black Rock Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3.40 in Black Rock Mining on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Black Rock Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Black Rock Mining
Performance |
| Timeline |
| oOhMedia |
| Black Rock Mining |
OOhMedia and Black Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Black Rock
The main advantage of trading using opposite OOhMedia and Black Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia position performs unexpectedly, Black Rock 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 Black Rock will offset losses from the drop in Black Rock's long position.| OOhMedia vs. Truscott Mining Corp | OOhMedia vs. Sayona Mining | OOhMedia vs. DMC Mining | OOhMedia vs. Balkan Mining and |
| Black Rock vs. Auswide Bank | Black Rock vs. Macquarie Bank Limited | Black Rock vs. Liberty Financial Group | Black Rock vs. Bank of Queensland |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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