Correlation Between OOhMedia and Imugene
Can any of the company-specific risk be diversified away by investing in both OOhMedia and Imugene 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 Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Imugene, you can compare the effects of market volatilities on OOhMedia and Imugene 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 Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Imugene.
Diversification Opportunities for OOhMedia and Imugene
Modest diversification
The 3 months correlation between OOhMedia and Imugene is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene 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 Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of OOhMedia i.e., OOhMedia and Imugene go up and down completely randomly.
Pair Corralation between OOhMedia and Imugene
Assuming the 90 days trading horizon oOhMedia is expected to generate 0.42 times more return on investment than Imugene. However, oOhMedia is 2.4 times less risky than Imugene. It trades about 0.01 of its potential returns per unit of risk. Imugene is currently generating about -0.03 per unit of risk. If you would invest 124.00 in oOhMedia on September 12, 2024 and sell it today you would lose (2.00) from holding oOhMedia or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Imugene
Performance |
| Timeline |
| oOhMedia |
| Imugene |
OOhMedia and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Imugene
The main advantage of trading using opposite OOhMedia and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia position performs unexpectedly, Imugene 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 Imugene will offset losses from the drop in Imugene's long position.| OOhMedia vs. Aneka Tambang Tbk | OOhMedia vs. Macquarie Group | OOhMedia vs. Challenger | OOhMedia vs. BHP Group Limited |
| Imugene vs. Clime Investment Management | Imugene vs. Viva Leisure | Imugene vs. Kip McGrath Education | Imugene vs. Saferoads Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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