Correlation Between OOhMedia and Coles
Can any of the company-specific risk be diversified away by investing in both OOhMedia and Coles 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 Coles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Coles Group, you can compare the effects of market volatilities on OOhMedia and Coles 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 Coles. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Coles.
Diversification Opportunities for OOhMedia and Coles
Weak diversification
The 3 months correlation between OOhMedia and Coles is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Coles Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coles 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 Coles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coles Group has no effect on the direction of OOhMedia i.e., OOhMedia and Coles go up and down completely randomly.
Pair Corralation between OOhMedia and Coles
Assuming the 90 days trading horizon OOhMedia is expected to generate 1.95 times less return on investment than Coles. In addition to that, OOhMedia is 2.4 times more volatile than Coles Group. It trades about 0.01 of its total potential returns per unit of risk. Coles Group is currently generating about 0.05 per unit of volatility. If you would invest 1,574 in Coles Group on September 12, 2024 and sell it today you would earn a total of 327.00 from holding Coles Group or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Coles Group
Performance |
| Timeline |
| oOhMedia |
| Coles Group |
OOhMedia and Coles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Coles
The main advantage of trading using opposite OOhMedia and Coles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia position performs unexpectedly, Coles 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 Coles will offset losses from the drop in Coles' long position.| OOhMedia vs. Aneka Tambang Tbk | OOhMedia vs. Macquarie Group | OOhMedia vs. Challenger | OOhMedia vs. BHP Group Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |