Correlation Between OOhMedia and Credit Corp
Can any of the company-specific risk be diversified away by investing in both OOhMedia and Credit Corp 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 Credit Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Credit Corp Group, you can compare the effects of market volatilities on OOhMedia and Credit Corp 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 Credit Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Credit Corp.
Diversification Opportunities for OOhMedia and Credit Corp
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OOhMedia and Credit is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Credit Corp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Corp Group 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 Credit Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Corp Group has no effect on the direction of OOhMedia i.e., OOhMedia and Credit Corp go up and down completely randomly.
Pair Corralation between OOhMedia and Credit Corp
Assuming the 90 days trading horizon OOhMedia is expected to generate 1.41 times less return on investment than Credit Corp. But when comparing it to its historical volatility, oOhMedia is 1.18 times less risky than Credit Corp. It trades about 0.01 of its potential returns per unit of risk. Credit Corp Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,756 in Credit Corp Group on September 16, 2024 and sell it today you would lose (128.00) from holding Credit Corp Group or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Credit Corp Group
Performance |
| Timeline |
| oOhMedia |
| Credit Corp Group |
OOhMedia and Credit Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Credit Corp
The main advantage of trading using opposite OOhMedia and Credit Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia position performs unexpectedly, Credit Corp 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 Credit Corp will offset losses from the drop in Credit Corp's long position.| OOhMedia vs. Accent Resources NL | OOhMedia vs. Hutchison Telecommunications | OOhMedia vs. Energy Resources | OOhMedia vs. GO2 People |
| Credit Corp vs. Energy Resources | Credit Corp vs. 88 Energy | Credit Corp vs. Amani Gold | Credit Corp vs. A1 Investments 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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